So You Get Your Stimulus Check Faster - News-Credit-Mortgage-Coin

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Wednesday, April 29, 2020

So You Get Your Stimulus Check Faster


Coronavirus stimulus payments started in mid-April, but millions of Americans are still waiting for theirs

Summary

Millions of Americans are still waiting for their payments for coronavirus stimuli to be received. If you are one of them, you can try entering your bank account information on the IRS website. And if you don't have a bank, you can have your payment sent to you on a prepaid card.


So far, the federal government has made economic payments to more than 88 million taxpayers, mostly by direct payment.



Payments totaling $ 1,200 for most adults and $ 500 for children were an important provision of the Coronavirus Aid, Assistance and Economic Security Act (CARES).

The first wave of payments went to households that filed tax returns for 2018 or 2019 and received a direct deposit refund. According to the tax foundation, however, another 60 million dollars are owed. It gets more difficult here.

If the IRS did not send you a direct deposit tax refund in 2018 or 2019, but you have filed a tax return for at least one of those years, you can check the status of your stimulus payment using the "Check My Payment" option. You can now get yours Add bank account information on this page which could speed things up.

If you have not had to submit an application in any of these years - for example, if your income in 2019 did not exceed $ 12,200 ($ 24,400 for married couples) - there is a separate page where non-applicants can provide their direct deposit information.

If all of these digital media fail, the IRS will send checks by mail, although it may take weeks or months to arrive. Up to 5 million checks are issued each week. The lower your adjusted gross income, the sooner you can count on yours. The main point of this exercise is to quickly get money into the hands of the Americans to offset the economic disruption caused by COVID-19. Unfortunately, you may have to wait a long time to walk the paper test route.

What if you don't have a bank account?

Around 24 million US households are classified by the FDIC as under-banked, another 8 million are completely without bank details. Many are turning to prepaid cards as an alternative to the traditional banking system.

Good news: it is possible to deposit your stimulus payment on a prepaid card.

Mastercard is one of the companies that are committed to this. I spoke to Kathryn Cleary, senior vice president of US business development for the company, who explained that Mastercard's all-purpose, rechargeable cards, like bank accounts, have routing and account numbers. Cleary clarified that gift cards intended for temporary use are not qualified.

If prepaid cardholders have received a tax refund for their cards for 2018 or 2019, they should all be set. If not, you can find your routing and account numbers by logging into your prepaid card account online or by calling the customer service number on the back of your card. Next, cardholders should enter the routing and account numbers in the IRS Get My Payment tool.

If you are without a bank account or under bank account and would like to use this but do not yet have a prepaid card, it is not too late. According to Cleary, you can register online and access the routing and account numbers immediately. The physical card should be in your mailbox within a few days.

Check the fine print before signing up for a prepaid card. Many charge a variety of fees: monthly maintenance fees, purchase fees, ATM fees, and more. If you can get a free bank account, this is probably a better option, though not everyone can (or won't) qualify.

Cleary believes that prepaid cards are cheaper (and more hygienic) for non-banks and sub-banks than check cashing services. It is also important to note that all Mastercard prepaid cards include FDIC insurance.

Another potential benefit: While the CARES Act only explicitly authorizes the taking of stimulus funds for overdue alimony, some banks garnish these payments to offset past debts or overdraft fees, the New York Times reports. Some people would therefore prefer not to get their stimulus funds through their bank.

Another treat for Mastercard, stimulus payments and prepaid cards: the card network works with the city of Los Angeles to distribute payments between $ 700 and $ 1,500. These are for low-income households affected by the COVID-19 pandemic. The program has received very high demand, according to the Los Angeles Daily News.

My experience of paying incentives
I hope to get my economic payment in my bank account. So far I've been out of luck. After visiting the IRS "Get My Payment" link and entering my social security number, date of birth, street, and zip code as shown, I received the following error message:

Payment status not available

Based on the information available to us, we are currently unable to determine your eligibility for payment.

Other issues are reported by people who submitted their taxes using tax preparation software and those who either received the wrong payment amount or didn't receive $ 500 for each of their dependent children. The Washington Post notes that people are also excluded from the IRS website while trying to enter their direct deposit information.

After several complaints from readers, CNBC presented this scenario to an IRS spokesman, who replied: “Instead of an error message or a message that the system is very busy, it just means that your information is not the standard here. But that should be fixed now. Just be patient and try again later. If you submitted taxes last or last year, we have your information. "

I had a little breakthrough on April 24th. The error message disappeared and I was able to enter my bank account details! Unfortunately, I failed the validation questions that included my adjusted gross income for 2019, whether I received a refund or money owed, or the amount of that refund or payment. I am sure that I entered the correct numbers because I had my tax return on the screen and checked the numbers again. As a backup, I was asked to enter my tax information for 2018, but apparently I didn't succeed. Again, I wasn't sure why.

I tried again on April 27th, and so did my taxes for 2019. This time, however, my entries for 2018 were accepted along with my bank account details. Maybe it finally worked? A little over 24 hours later, I haven't received the direct deposit yet, but I'll give it some more time.

Einstein may have said that the definition of insanity is to do the same thing over and over again and expect different results, but in my experience with the IRS Get My Payment website, the repeated action always leads to different results. So if you are in this position, stick with it! According to the IRS, the website is updated every day. So it's worth trying a few minutes every day - or at least every few days.

He has spent the past decade in the personal finance industry, conducting consumer and industry research and commenting on media and consumers. His focus is on credit cards, debt management and credit scores. Ted regularly shares his advice across major media such as Good Morning America, the Wall Street Journal, CNBC and Fox Business. He also writes the weekly "Wealth and Wants" column for CreditCards.com, which mainly deals with cashback credit cards.

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