The big day is here and banks are set to start handing out the third stimulus checks of $1,400. They are coming in fast as the IRS goes about delivering on its promise to transfer or mail 100 million of them in 10 days. And they have come not a day too soon. An overwhelming number of people struggle to cope with the crippling effects of the coronavirus pandemic on the American economy. There are bills to be paid and debts to be cleared for the majority of Americans, and they could do with some immediate relief.
The Third Stimulus Check: 90 Million In The Bank
The IRS has said that 90 million of the third stimulus checks are already in the bank. That is $242 billion as part of just the first round of payment. They have also begun mailing out the checks. 150,000 of them are already on their way courtesy of the United States Postal Service. They are worth a further $442 million. The IRS has assured that the promised 100 million of the third stimulus checks will be on their way in the next 10 days.
Banking at a smaller institution like Current, a startup bank has been a boon for its customers. This small bank has been faster off the blocks as people here have begun receiving their payments from last Friday. It is just a day after the President put his pen to the Rescue Plan. These banks have paid their customers from their funds rather than wait for March 17, the official date set up by the authorities for fund settlement.
However, not all will have the money in their banks by March 17. The fund will go out in segments of payments through the next several weeks. There may be further delays for some, such as for those who filed tax returns on paper instead of filing them online. The IRS has been calculating the third stimulus check based on a person’s latest tax returns. But it remains overwhelmed by paperwork as a result of the pandemic.
The Third Stimulus Check: Set To Make A Difference
It is almost a year after the shutdown of the American economy, and people in their millions are up for a very tough time. An overwhelming 38% of Americans have been hit hard by the pandemic, as reported by the financial service company, TransUnion. That’s a drop from the 60% reported by Americans a year ago, but the figure remains a huge concern. It reflects the severe distress that many Americans are in. despite the improvement, more than a third of the Americans continue to feel the effects of the impact on the economy, said Charlie Wise, TransUnion head of global research and consulting.
It is not that all Americans who will receive the third stimulus check have lost their jobs or had their income curtailed due to the crisis. Around 40% of them had suffered no loss in income during the pandemic.
Glitches Delay The Payment
Minor blips continue to dog the smooth distribution of the stimulus payments. Customers at Wells Fargo complained that they could not log into their accounts. This was frustrating as it further delayed the payments. JPMorgan Chase said on Wednesday that they have succeeded in posting every payment they have received to date from the IRS.
Wells Fargo is looking into the problem. They said that the high volume of login might be a reason for the issues that customers are facing while banking online. But they assured that it would not affect the stimulus payments. Payments with the effective date of March 17 have already been credited to the accounts.
Getting The Stimulus Check Early
Customers at several smaller banks did manage to receive their stimulus checks quite early. They received it just one day after President Biden signed into law the COVID-19 Economic Relief Bill, as already mentioned. It was the internal decision of the banks to immediately credit the due amount to the customers’ accounts from their funds. But the bigger banks maintained that they had no control over the timings of the payments.
The payment date had been set by the authorities on the 17th, though the IRS began issuing payments by the end of last week.
JPMorgan Chase and Wells Fargo said that they would credit the money by Wednesday and sought to dispel the impression that they were holding the funds.
Tracking Your Stimulus Check
The ‘Get My Payment’ portal was reopened by the IRS after the American Rescue Plan became law. It has let people keep track of their third stimulus check payment. This website was created in 2020 for the first stimulus check of $1,200 under the CARES Act (Coronavirus Aid, Relief, and Economic Security).
By checking into the portal, people get to see a set of messages. Some might see that the payment has already been processed. This will be accompanied by the date of payment and the method by which the amount will be transferred by mail or through direct deposit. Getting your payment by mail could mean either a pre-loaded debit card or a paper check. Some have received just a message confirming their eligibility. They are yet to get a payment date.
What Does ‘Payment Status Not Available’ Indicate?
If The ‘Payment Status Not Available’ has been shown when you have logged in, it could indicate that your third stimulus check has not been processed yet. But it could also mean that you are not eligible for payments.
Is Your Status Displaying ‘Need More Information?
The IRS has clarified that if you have received a ‘Need More Information’ message, it means that the third stimulus check was returned. The postal service could not deliver the stimulus check. You could make use of the ‘get my payment’ site to give your bank details to the IRS.
Did You Get The Wrong Amount?
You may have received the payment on time only to realize that the amount is less than expected. This could be because of a change in income or some issues related to your dependents.
Under the provisions of the law governing the stimulus relief, you and every dependent are eligible for $1,400 if your income is $75,000 or less. For married couples, those earning below $150,000 will get the full amount. Every dependent of any age will receive a similar amount. But the amount goes down for any increase in earnings and individuals earning above $80,000 will be cut off. In the case of married couples, the cut-off figure is $160,000.
You could also get the wrong amount if you have not filed your tax returns for 2020. For example, if the IRS has based the stimulus check on your 2019 returns and you had a baby in 2019, you will have missed out on the third stimulus check of $1,400 for the baby.
You will eventually get your pending third stimulus checks. But you need to file your 2020 returns immediately before the IRS sends out your stimulus payment. Then you would have to wait a year for the check by filing your 2021 returns.