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- While more than 159 million Americans have received their stimulus checks, some are still experiencing delays.
- The Internal Revenue Service (IRS) is working quickly to address delays and other mishaps, but has not yet provided solutions for all problems.
- here are some of the most common problems people have shared on twitter or in business insider emails, and possible solutions using the information we have.
- read more personal finance coverage.
The Treasury Department moved quickly, by government standards, to send stimulus payments to millions of Americans.
The IRS says it has sent more than 159 million relief payments as of June 3, mostly via direct deposit. about 35 million were sent as paper checks and 4 million were prepaid debit cards.
The need for cash is urgent for many people who have bills to pay and income to replace, but the system is not flawless. On twitter and in emails to business insider, many people have shared their frustrations with delays in payments, updating their bank information, and the amount they receive.
How you get paid depends in part on whether or not you file taxes. Here are some of the common problems people experience with stimulus payments, or “economic impact payments” as the IRS calls them, and what to do about them.
if you file taxes:
1. your address has changed
if the irs doesn’t have your direct deposit information, they will likely mail your payment to the most recent address they have on file, which may come from your last tax return or the united states postal service if you mailed a direction to change.
if the last tax return you filed was for 2018 and the mailing address is no longer accurate, you can use the get my payment tool to provide an updated address or, better yet, bank account information if the irs has Your payment has not been sent yet.
2. your bank account was closed
If the last tax return you filed was for 2018 and listed a bank account that is now closed, the payment will be returned to the IRS and mailed, which could significantly delay your payment.
However, you can check the “get my payment” tool to see if your payment has been rescheduled for delivery, and if not, please provide your new bank information as soon as possible.
3. You haven’t filed your 2019 tax return yet
Stimulus payments are based on adjusted gross income (AGI) on 2019 or 2018 tax returns if you haven’t already filed this year. If you didn’t qualify for a payment based on your 2018 income, but did qualify based on your 2019 income, you should apply as soon as possible.
Payments will be sent throughout 2020, so as long as you file your 2019 return and meet the income restrictions, you can get your money.
4. your payment goes to an account number you don’t recognize
According to a US report. uu. today, some people were quick to realize their stimulus check went to a bank account that isn’t theirs after seeing an unknown bank account number reflected in the “get my payment” tool.
The IRS released new guidance on this topic on April 21, stating that, “in some cases, your Economic Impact Payment may have been directed to the bank account associated with the refund settlement product or debit card. prepay”. This reportedly affected up to 21 million people who used turbotax, h&r block and jackson hewitt to e-file a tax return and pay their preparation fee through their refund or get an advance on their refund, reported the washington post.
“if the refund settlement product or associated account is closed or no longer active, the bank must reject the deposit and return it to the irs” and the “get my payment” tool will update accordingly, although there may be be a delay, says the irs. After the returned payment is processed, it will be sent as a paper check to the address on your 2019 or 2018 tax return, or to the address on file with the US Postal Service. uu., whichever is more recent.
In a statement provided to Business Insider, a spokesperson for H&R Block said the Internal Revenue Service “created confusion by not always using customers’ final destination bank account information for stimulus payments.”
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“We share our customers’ frustration that many of them have yet to receive these much-needed payments due to their decisions, and we are actively working with the IRS to have stimulus payments sent directly to customer accounts.” said the spokesman. .
A TurboTax spokesperson said: “Any TurboTax customer who selects a refund transfer or debit card that receives a stimulus payment sent from the IRS to those accounts will receive those stimulus payments without delay or fees. The IRS would be the best source for additional information related to their online stimulus tracking tools and payment details and times.”
5. you had a significant change in your income in 2020
If you filed a tax return for 2019 and provided direct deposit information, your payment should arrive very soon, if it hasn’t already. Unfortunately for some people, the payment will not be enough to meet current needs.
The stimulus payments are technically based on 2020 revenue figures, as it is a refundable tax credit that offsets your tax liability this year. But current income data is not readily available to the IRS, so payments are made based on past income.
If your income dropped significantly in 2020, qualifying you for a payment higher than your 2019 income, you may be able to claim your money on next year’s tax return.
6. you live abroad and have a bank account outside the us uu.
US expats are eligible to receive stimulus payments, but the process has been fraught with problems for some.
Several US citizens living abroad told Business Insider that they haven’t been able to access the “Get My Payment” tool to track their payment because they have a foreign address, which the tool doesn’t recognize. Others with no tax obligations have tried using the “Non-Filers: Enter Payment Info Here” tool to provide bank information, but cannot provide a non-U.S. bank account number. uu.
The IRS does not typically send refunds or other deposits to non-U.S. bank accounts, according to its website, and does not appear to make an exception for coronavirus stimulus checks. even people who normally receive deposits of federal benefits, such as social security, into a bank account outside the us. uu. They say they haven’t seen their stimulus payment at the end of May.
When the IRS does not have bank information, it will send a stimulus payment in the mail. If the mail service in your country of residence has been affected by the coronavirus pandemic, or is normally slow, there could be a significant delay in receiving your payment. however, you will likely need a US bank account to deposit the check.
representative dina titus of nevada sent a letter to treasury secretary steven mnuchin and irs commissioner chuck rettig on april 23 asking them to fix these issues for us citizens living abroad, but there has yet to be a resolution .
if you do not declare taxes:
1. the irs does not yet have your direct deposit information
If you earn less than the standard deduction for your filing status, then you are not required to file a tax return (although you can still file to claim refundable tax credits).
To issue a stimulus payment to people who don’t normally file taxes or receive any kind of financial help from the government, the IRS says it needs some basic information. You can use the “Non-Filers: Enter Payment Information Here” tool to provide your information and choose whether you want your payment by direct deposit, the fastest option, or by mail.
Note: If you have dependent children under the age of 17, the deadline has passed to claim the additional $500 per child payment using the non-filer tool.
2. receive social security benefits, railroad retirement benefits, supplemental security income (ssi), or veterans benefits
The irs will automatically pay social security retirement and disability beneficiaries, rail retirees, veterans affairs beneficiaries, and people with supplemental security income (ssi). stimulus payments will be sent the same way you receive regular benefits and for the maximum individual amount: $1,200.
If you use direct deposit or an express direct debit card, your payment will reach you faster than if you normally receive a check in the mail. These payments were scheduled to be delivered in May, according to the treasury.
However, if you live abroad and receive federal benefits in a non-US bank account. In the US, you may experience a delay in receiving your stimulus payment.
3. receives government benefits but has dependents under the age of 17
if you receive social security, ssi, or railroad retirement benefits and also have dependents under the age of 17, the irs asked you to take an extra step to get the additional $500 per child stimulus payment using the “non-filers: enter payment information here.”
If you did not complete this step by the deadline, you will only receive your individual payment at this time. but you will be able to claim the difference on your tax return next year.
editor’s note: this post has been updated with turbotax and h&r block declarations.
- Read more about managing your money in this tumultuous time:
- 3 options for people struggling to pay their mortgage during the global health crisis
- 4 reasons to get disability insurance even if you think you don’t need it
- if coronavirus has hit you financially, you may be able to pause payments on these 8 bills
- how to get a check US government stimulus bill, which could pay up to $1,200 if you qualify
- In response to the coronavirus, credit card issuers like Amex and Capital One are allowing customers to skip interest-free payments and more
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