More Economic Impact Payments set for disbursement in coming days taxpayers should watch mail for paper checks, debit cards | Internal Revenue Service

ir-2021-62, March 22, 2021

Washington – The Internal Revenue Service announced today that the next batch of Economic Impact Payments will be issued to taxpayers this week, and many of them will be made by paper check or prepaid debit card.

For taxpayers receiving direct deposit, this batch of payments began processing on Friday and will have an official payment date of Wednesday, March 24, with some people seeing them in their accounts sooner, possibly as interim or pending deposits. A large number of this latest batch of payments will also be mailed, so taxpayers who don’t receive a direct deposit by March 24 should watch the mail in the coming weeks for a paper check or credit card. prepaid debit, which is known as economic impact. payment card or eip card.

Most people don’t need to do anything to get this round of Economic Impact Payments (EIPs). People can check the Get My Payment tool on irs.gov to see if their payment has been scheduled.

“The Internal Revenue Service continues to send out the third round of stimulus payments in record time,” said Internal Revenue Service Commissioner Chuck Rettig. “Because this new set of payments will include more payments by mail, we urge people to keep an eye on their mail for a check or debit card in the coming weeks.”

After the US Bailout Act was signed into law on March 11, the IRS moved quickly to begin delivering the third round of economic impact payments. The IRS kicked off the first batch of $1,400 stimulus payments, mostly via direct deposit, on March 12.

Today marks the second batch of payments, with additional payments anticipated weekly going forward. The vast majority of taxpayers who receive EIPs will receive them by direct deposit. In addition, the IRS and the Bureau of Tax Service leveraged the data in their systems to convert many payments into direct deposit that would have otherwise been sent as paper checks or debit cards. this sped up the disbursement of these payments for weeks.

watch the mail for paper checks, eip cards

Taxpayers should note that the third EIP payment method may be different than previous stimulus payments. More people are receiving direct deposits, while those who receive them by mail may receive a paper check or EIP card, which may be different than how they received their previous stimulus payments. The IRS and the Treasury Department urge eligible individuals who have not received a direct deposit to watch their mail carefully during this time.

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Paper checks will arrive in the mail in a white envelope from the us. uu. treasury department. For those taxpayers who received their tax refund in the mail, this paper check will look similar, but will be labeled “Economic Impact Payment” in the memo field.

The eip card will also come in a white envelope that will prominently display the seal of the united states. treasury department. The card has the Visa name on the front and the issuing bank, Metabank, N.A. in the back. the information included with the card will explain that it is an economic impact payment. each email will include instructions on how to activate and use the card safely. It is important to note that none of the EIP cards issued for any of the three rounds are rechargeable; recipients will receive a separate card and will not be able to load funds onto an existing card. eip cards are safe, convenient and secure. EIP card recipients can make purchases online or in stores anywhere visa debit cards are accepted. They can get cash from in-network ATMs, transfer funds to a personal bank account, and get a replacement EIP card if needed without incurring fees. they can also check their card balance online, through a mobile app or by phone without incurring fees. The EIP Card provides consumer protection against fraud, loss, and other errors. The EIP card is sponsored by the Bureau of the Tax Service and is issued by the Financial Agent of the Treasury, Metabank, N.A. The IRS does not determine who gets a prepaid debit card.

more information about these cards is available at eipcard.com.

how will taxpayers receive their stimulus payment?

Taxpayers with direct deposit information on file with the irs will receive their payment that way. For those without direct deposit information on file with the IRS, the IRS will use recent federal records of payments to or from the government, when available, to make the payment as direct deposit. this helps speed up payment delivery. otherwise, taxpayers will receive their payment in the form of a check or debit card in the mail. If the direct deposit information is sent to a closed bank account, the payment will be reissued by mail to the address on file with the IRS. The IRS encourages taxpayers to refer to the Get My Payment tool for additional information.

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highlights of the third round of economic impact payments

In general, most eligible individuals will get $1,400 for themselves ($2,800 for joint filers) and $1,400 for each of their qualified dependents claimed on their tax return. Eligible families will receive a payment based on all of their qualified dependents claimed on their return, including older relatives such as college students, adults with disabilities, parents, and grandparents. Unlike the first two payments, the third stimulus payment is not restricted to children under the age of 17.

Because these payments are automatic for most eligible individuals, contacting financial institutions or the irs about payment timing will not expedite your arrival.

an eligible individual’s eip3 amount will be based on the taxpayer’s last processed 2020 or 2019 tax return. this includes anyone who registered online at irs.gov using the agency’s non-filer tool last year or you filed a special simplified tax return with the irs. If the IRS received and processed a taxpayer’s 2020 tax return, the agency will calculate the amount of the individual’s EIP3 based on that return.

If a taxpayer’s payment is less than the full amount and is based on their 2019 return, they may qualify for a supplemental payment after they file their 2020 return. The IRS will automatically reevaluate their eligibility. If the agency determines that they are entitled to a higher payment or full payment, it will send them a supplemental payment that covers the difference between what they originally received and the higher amount. if the revalued amount is less, they will not have to repay the difference. Other than filing a 2020 tax return, no action is required on your part.

in addition, the irs will automatically send eip3 to people who did not file a return but receive social security retirement, survivor or disability (ssdi) benefits, railroad retirement benefits , supplemental security income (ssi), or veterans affairs benefits. this is similar to the first and second rounds of economic impact payments. Social Security and other federal beneficiaries will generally receive this third payment in the same way as their regular benefits.

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The IRS is working directly with the Social Security Administration, the Railroad Retirement Board, and the Veterans Administration to get up-to-date 2021 information for recipients to ensure it sends automatic payments to as many people as possible. More information on when these payments will be made will be provided on irs.gov as soon as it is available.

Although payments will be automatic for many people based on their federal benefit information, some may need to file a 2020 tax return, even if they don’t usually file one, to provide the information the irs needs to send benefits. payments for any qualified dependents. . People in this group must file a 2020 tax return to be considered for an additional payment for their dependents as quickly as possible.

special reminder for those who don’t normally file a tax return

People who do not normally file a tax return and do not receive federal benefits may qualify for these stimulus payments. this includes those who are homeless and others. If you are eligible and did not receive a first or second Economic Impact Payment (i.e., an EIP1 or EIP2) or received less than the full amounts, you may be eligible for the 2020 Recovery Rebate Credit, but you will need to file a return. See the special section on irs.gov: Claim the 2020 Catch-up Refund Credit if You’re Not Required to File a Tax Return.

Free tax return preparation is available to those who qualify.

The IRS reminds taxpayers that income levels in this new round of stimulus payments have changed. this means that some people will not be eligible for the third payment even if they received a first or second economic impact payment or claimed a 2020 recovery rebate credit. payments will begin to reduce for people who earn $75,000 or more in gross income adjusted ($150,000 for married filing jointly). payments end at $80,000 for individuals ($160,000 for married filing jointly); people above these levels are not eligible for a payment.

More information is available in Fact Sheet 2021-05, Updated Details on the Third Round of Economic Impact Payments.

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