For the second year in a row— the now third stimulus check has already been dispatched to the public in need. Many citizens may have already seen it in their bank accounts. This happened following Joe Biden, the President of the United States, signing and activating the American Rescue Act as a law. Since many have laid their eyes on them, some may have to wait even more in line to see it.
On Friday, it was announced that about 85% of people would be getting their 1400 dollars check, by Joe Biden. The thing is, there were also delays in the previous two stimulus checks. And the third stimulus check may also see a delayed course.
In the past two distributions, people had to wait in order to first open a bank account. The delay happened as there was no registered account with the IRS. Hence, the wait was long. They had to first wait for their debit cards and paper checks to come home.
Who Will Receive Their Third Stimulus Checks First?
Based on the rollouts of the previous two payments, the answer seems clear. Several people who had bank accounts or have filed their tax returns for 2019 or even 2020, will likely get their third stimulus check sooner than others.
People get the paper checks through a direct deposit. But why? The IRS begins by dispatching the checks to people they know are easier to reach and finish off with. It seems to be an immensely huge effort. Especially considering the 422 billion dollars the IRS has to distribute. These funds will be distributed to 100 million people who pay their taxes.
A spokesperson from TurboTax spoke to CBS MoneyWatch about this in an email. They said that the citizens need not do anything to receive their third stimulus check. He said that the IRS will take such decisions based on tax returns. Meaning, the eligibility will come from the measures of people who have paid their tax returns in either of the past 2 years (2019-20).
Tax Payers And The Stimulus Check
The spokesperson for TurboTax also said that the information from the taxpayers‘ registered bank accounts would directly get the third stimulus check. It may also ensure the address for people who could receive it there. Some even received theirs in the account where the tax returns were deposited.
Even now, if bank accounts were not given or tax returns weren’t filed, one can still apply for it with the IRS. On Friday, the first of the third stimulus checks was received at about 11 in the morning, E.T. This was reported by a financial institution. ‘Current,’ a bank, mentioned how several of its consumers received their third stimulus checks really fast.
They explained further that this could be due to several users updating their accounts at banks following previous tax returns. 9,800 dollars of a stimulus payment was received by one taxpayer.
Reasons For Delay In Receiving Third Stimulus Check
The third stimulus check began its rollout faster than the others. Even right after the signature was provided to turn the amounts distributed into a whole law. But there could also be reasons for stalling. There could be reasons and possibilities for receiving the wrong amount as well.
1. 2019-2020 Tax Returns Are Not Filed
Several people do not file their tax returns until the deadline of the 15th of April. If you haven’t it isn’t something to worry about. But the determination of the amount that one will receive will still be decided with the 2019 taxpayers.
This in turn becomes an issue with people who do not need to pay any taxes or apply for tax returns. This includes people below the poverty line or who earn almost nothing. Or even homeless people. Such people who rely on Social Security will also face this issue.
Last year, in 2020, the IRS announced that it had distributed 1200 dollars to over 22 million American people. And none of these were relying on the tax returns. Hence, the organization created a new website for people who do not file. There, people could provide details of home addresses and bank accounts. It would also ask for the number of dependants in the house— each of whom was provided 500 dollars then.
2. Paper Return Filing Before Third Stimulus Check
The IRS and American Treasury mentioned that they shut down the website for people who do not file tax returns to encourage them to apply for returns. The IRS also warned that everyone who applied for a tax return in the paper may face a delay in receiving their third stimulus check.
There’s been a logjam since 2019 with the tax returns. Hence, 2020 ones may also add up to the pile. And a lot of it can be owed to the pandemic. Including the processing for last year’s papers.
By the time January ended, more than 6 million processing of tax returns were left pending. The IRS said that people must now opt for digital returns, considering that they may receive their third stimulus check sooner than others.
3. Bank Account Was Changed Or Moved
If you moved recently or changed banks— you can pile up in this list. The IRS announced that they would open their ‘Get My Payment’ sector on their official website which will help people track where their third stimulus check has reached.
The agency also added that they have been looking into which bank accounts are correct for the consumers they have. The thing is— people who changed their accounts will receive a bounced check. It will in turn be sent to your house. Hence, delayed.
4. Dependants That Are New Or Old Before The Third Stimulus Check Was Announced
While people may still get their checks, it wouldn’t mean the correct amount as such. Why? Well, it could all go back to the dependents you have in the family. And the change it has had since the previous stimulus checks were issued.
Having a new baby with no filed returns will lead to a 2019 record-based check. That means families with new members like babies may not receive more due to failed taxes filed.
But the organization said yesterday that these families will also be compensated eventually. The IRS will check the record and automatically forward the third stimulus check to the family with a new baby. Similar issues will be faced by people who do not ever file their tax returns.
5. 2020 Saw You Lose Income
Receiving less amount could also be a result of not filing tax returns even after losing money in 2020. This is especially a case for people who lost their jobs in the 2020 pandemic.
In such times, the IRS will consider the 2019 returns for their third stimulus check. This would show that they do not have eligibility for it.
But then, the sooner they file their returns in 2020, the sooner they may receive their third stimulus check. And those who already got theirs with lower amounts could still update their returns.