Why Haven’t I Received a Coronavirus Stimulus Payment Yet?

Does everyone you talk to seem to have received their stimulus money already, but you’re still waiting for your payment to arrive?

More than half of eligible Americans have already received their Economic Impact Payment, but tens of millions more are still waiting. Here’s when you can expect yours, how to help it arrive quicker, or why you may not be receiving a stimulus payment.

The Schedule for Issuing Payments

The IRS is trying to get stimulus payments out to Americans as quickly as possible, but with approximately 150 million checks that need to be issued – it will take some time.

First, the IRS is working on getting the funds to Americans via direct deposit. Most of the payments being issued to people whose account details are known by the IRS have already been distributed, and the rest are scheduled to be deposited as the information is obtained.

Next, the IRS will send payments for individuals currently receiving federal benefits, such as Social Security checks, retirement or disability benefits, Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs (VA) benefits. The stimulus payments will be issued the same way these individuals receive their regular federal benefits – whether by direct deposit, Direct Express, or paper check. The Treasury has promised that all Social Security and Railroad Retirement beneficiaries will receive their benefits earlier in May. SSI and VA beneficiaries should get their payments by mid-May.

On April 24, the IRS began issuing paper checks to Americans who had not provided their banking details. Lower-income Americans were prioritized, and individuals earning an adjusted gross income (AGI) of $10,000 or less should have already received their checks. The IRS will then begin sending out approximately 5 million paper checks each week, scheduling the mailings according to incomes in increasing $10,000 increments. For example, checks for individuals with an AGI that falls between $20,000 and $30,000 were mailed out on May 1. On May 8, the checks for those with incomes between $30,000 and $40,000 will be mailed out. This schedule will continue through September 4th.

How Can My Stimulus Money Get Here Quicker?

The IRS will use your most recently filed taxes to determine where to send your stimulus money and the amount you are eligible to receive. If your most recently filed returns have not yet been processed, or you’ve received your refund by paper check, the government does not have your checking account information and your payment may be delayed.

You can update this information on the track my payment portal on the IRS website. You will need your Social Security Number, the gross income of your most recent tax returns, your bank routing number and your checking account information. Once you’ve shared your account information, your stimulus payment should be scheduled for deposit within the week.

If the IRS already has your account information and you still have not received your stimulus money, or you would prefer to receive your payment by paper check, you can track your payment on the same link. The site is updated once a day.

What if my Information has Changed Since I Filed my Last Tax Return? 

If the checking account used for your most recently filed taxes has since been closed, the payment will bounce back to the IRS, and they will send a paper check to the home address on file from your tax returns.

To update a checking account, use the IRS payment portal to enter your current information.

If you’ve moved since filing taxes, you can choose to update your address information with the IRS, or use another method which may include informing the U.S. Postal Service of a change of address.

What if I Don’t File Taxes?

If you are not required to file taxes and you are eligible for an Economic Impact Payment, you can still receive your check. Just enter your information here.

Why You May Not Qualify for a Check 

The CARES Act does not promise payments for every American. Dependents older than 16, individuals who do not have a Social Security Number and those with an AGI above $99,000, will not be getting a stimulus payment. The threshold is higher for individuals filing as a head of household at $136,500, and up to $198,000 for joint filers.

Watch Out for Stimulus Scams

While the IRS urges people to update their information on the payment portal, it’s important to note that they are not reaching out to individuals. If you receive a phone call, social media post, email or text message asking for your personal financial information, it is a scam. There is also no application fee or processing fee for Economic Impact Payments. If you’re asked to pay one, it’s also a scam. Be diligent and stay financially safe and healthy!

Article Source: CUcontent.com

What You Should Know About COVID-19 Stimulus Checks

President Donald Trump recently signed a $2 trillion economic relief plan set to provide aid to millions of Americans impacted by the COVID-19 (Coronavirus) pandemic. The package includes stimulus payments for individuals, additional unemployment coverage, student loan relief, and more. What does that mean for you?

Stimulus Payments

Most adults will receive a check in the mail or via direct deposit. The amount will vary based on adjusted gross income, filing status, and the number of dependents you claim. The break down is as follows:

  • Single adults who made $75,000 or less annually will receive $1,200. If you have qualifying children ages 16 or under, you will receive an additional $500 per child.
  • Married couples with no children who made $150,000 or less will receive $2,400.
  • Taxpayers who file as the head of household will get the full payment if they earned $112,500 or less.
  • For single adults who made more than $75,000, the payment gradually decreases until it stops all together at $99,000.
  • For married people with no children who made more than $150,000, the stimulus payment gradually decreases until it stops all together at $198,000.

If someone claims you as a dependent – even as an adult, you will not be eligible for a relief payment. To see your adjusted gross income, look at Line 8B on your 2019 1040 federal tax return. For those who did not get to file in time for tax year 2019 due to the pandemic, this number will be based on your 2018 federal return.

Most people will receive their payments within three weeks. According to the bill, you’ll also receive a paper notice in the mail a few weeks after your payment has been distributed. That notice will also contain information about where the payment ended up and in what form it was made, as a confirmation.

Additional Unemployment Coverage

Under the stimulus package, additional unemployment benefits will be extended to people who wouldn’t typically be eligible for unemployment.

Typically, self-employed and part-time workers, gig workers, freelancers and independent contractors aren’t eligible for unemployment benefits, but under the stimulus package – those groups will be protected. Benefits will be calculated based on previous income using a formula from the Disaster Unemployment Assistance program.

Under the plan, eligible workers will get an extra $600 per week in addition to the state unemployment they are currently receiving. The state unemployment and extra coverage is designed to replace the paycheck that has been lost due to Coronavirus.

Student Loan Relief

The federal government has already waived two months of interest and payments for student borrowers. There will be an automatic payment suspension until August 30th for any student loans held by the federal government. Older Federal Family Educational Loans, Perkins Loans, or loans from state or private agencies are unfortunately not eligible. However, if you have a private student loan, it’s worth asking to see what options might be available to you.

Retirement Accounts

The stimulus package has also suspended certain retirement account rules for the calendar year 2020. No one will have to take a required minimum distribution from individual retirement accounts or workplace retirement savings plans.

If you have an IRA or workplace retirement plan, you can withdraw up to $100,000 without the usual 10 percent penalty, as long as the withdrawal is because of the COVID-19 outbreak. The withdrawal qualifies if you, a spouse, or a dependent tested positive for the virus, or you experienced other negative economic effects related to the pandemic. You’ll also be able to spread out any income taxes you owe as a result over a three-year time period from the date of the distribution.

You can also borrow from your 401(k) and can take out twice the usual amount. For 180 days after the bill passes, if you provide certification that you’ve been affected by the COVID-19 pandemic, you can withdraw up to $100,000. If you already have a loan and it’s supposed to be repaid before December 31st, you will get an extra year.

We’re facing unprecedented times, as the pandemic has touched everyone’s lives in some way. Please know, First Financial is here for you during this time. If you’re experiencing financial hardship due to the Coronavirus pandemic or you just have questions about your finances, reach out to us. We can get through this together, one step at a time.