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Economic Impact Payments FAQs

 

Economic Impact Payments FAQs

The IRS announced the GET MY PAYMENT portal is now live for individuals to log on and view the status of their economic impact payment. Go to https://www.irs.gov/coronavirus/get-my-payment

Second Round of Economic Impact Payments Begins ImmediatelyUpdated January 6, 2021

The Internal Revenue Service just clarified that economic impact payment recipients who had their direct deposit payments erroneously sent to an account that is closed, inactive or a temporary account, will not receive their payment and must instead claim the Recovery Rebate Credit when filing their 2020 tax return electronically.

In an updated set of frequently asked questions, the IRS noted that eligible EIP recipients can check the status of their payment on the IRS’ Get My Payment tool, which was updated as of Jan. 5. Individuals whose payments were sent to the wrong account will see “Payment Status #2—Not Available.” Read the updated IRS FAQ.

 

Official IRS information about the COVID-19 pandemic and the second round of Economic Impact Payments can be found on the official site of the IRS at https://www.irs.gov/coronavirus/economic-impact-payments. Clear Mountain Bank does not control the delivery of these payments, the IRS does. 

On December 27, 2020, the President of the United States signed a second COVID-19 economic stimulus package into law. The Treasury Department and the Internal Revenue Service began delivering a second round of Economic Impact Payments (stimulus) to millions of Americans as part of the implementation of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.

These economic impact payments provides for direct government assistance to eligible Americans to offset the economic impact of the virus. For most people, no action will be required.

The IRS began issuing $600-per-person EIPs last week via direct deposit and also began issuing paper checks, which will continue to be sent through the month of January. The IRS this month will also begin issuing payments via prepaid debit cards for certain EIP recipients.

With regard to the direct deposit payments, the IRS acknowledged that “because of the speed at which IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active,” and that those payments are required by law to be returned by the IRS. “While the IRS is exploring options to correct these payments, if you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return,” the IRS said.

Below are some FAQs provided by the ICBA (Independent Community Bankers Association) and include answers on how and when these payments are going out and other helpful details. We will update this information as it becomes available.

*This page is for informational purposes only and is subject to change. Final rules, determinations and guidelines are subject to the Internal Revenue Service (IRS).

When will I receive my payment?

If you are eligible, the IRS began issuing $600-per-person Economic Impact Payments (EIP) last week via direct deposit and also began issuing paper checks, which will continue to be sent through the month of January. The IRS this month will also begin issuing payments via prepaid debit cards for certain EIP recipients.

With regard to the direct deposit payments, the IRS acknowledged that “because of the speed at which IRS issued this second round of payments, some payments may have been sent to an account that may be closed or no longer active,” and that those payments are required by law to be returned by the IRS. “While the IRS is exploring options to correct these payments, if you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return,” the IRS said.

The IRS has a “Get My Payments” portal, which is now live for individuals to check the status of their stimulus payment at https://www.irs.gov/coronavirus/get-my-payment.

How will I know if I am eligible? How large a payment will I receive?

The IRS is responsible for determining eligibility for Economic Impact Payments. The IRS database will be used to determine routing and bank account numbers for qualified individuals.

Per the signed legislation, the full credit amount is $600 per individual, $1,200 per couple, and $600 for dependent children under the age of 17. It is available for individuals with adjusted gross income at or below $75,000 ($112,500 for heads of household), and couples with adjusted gross income at or below $150,000. If you have children, you will receive an additional $600 per child.

For those above this income level, the amount will be reduced by $5 for each $100 your adjusted gross income exceeds the above thresholds.

This means:

  • An individual without children will not receive any EIP funds if their AGI exceeds $87,000.
  • A couple without children will not receive any EIP funds if their AGI exceeds $174,000.
  • A family of four will not receive any EIP funds if their AGI exceeds $198,000.
  • Payment calculations will be based on taxpayers’ 2019 returns or on their 2018 returns if they have not yet filed for 2019.

To qualify for a payment, an individual must have a work-eligible Social Security number and must not be claimed as a dependent by another taxpayer in the current tax year. Lower income individuals who are not subject to income tax will also receive payments.

For complete eligibility information, please visit the IRS website.

How will I receive my payment? Will it be sent as a paper check or electronically?

Most individuals will receive their payment electronically. This is faster and safer than mass distribution of paper checks.

If you filed taxes in 2019 and provided on your tax return your bank routing and account number for payments or refunds, and this information has not changed, the IRS has the information it needs to send your payment electronically, with no action required on your part.

However, if the IRS does not have account information on file for direct deposit, then individuals may receive a check or prepaid debit card.

If you are a Social Security recipient, the IRS will use the direct deposit information held by the Social Security Administration. If the direct deposit information you have provided in the past is for a bank-issued, prepaid debit card, you will receive your funds on that card account. Individuals receiving disability benefits, railroad retirement, or veterans benefits do not need to provide additional information to receive their payments.

The IRS worked with the relevant federal agencies to access the relevant information to distribute payments in the same manner as those individuals receive their regular benefit payments (e.g., direct deposit to their bank account). Also, some individuals received a prepaid debit card from the government instead of a check; the IRS currently plans to issue new cards rather than reload the previous card with the second payment.

The IRS will also make changes to the envelope used to distribute the prepaid card so that individuals do not mistakenly discard it. The IRS will provide more information about the new envelope design and notifications.

If an individual is a non-filer or failed to receive some, or all, of their first Economic Impact Payment, please check out the IRS website to learn more about claiming the Recovery Rebate Credit on the 2020 tax return at https://www.irs.gov/newsroom/recovery-rebate-credit.

 

I file a tax return every year, but the IRS does not have my current information on file. Can I receive my payment electronically?

Yes. The IRS has an online portal called “Get My Payment” where people can obtain details about their payment and provide direct deposit information if the IRS does not already have it. At this time, the IRS online portal is under maintenance. For updated information, please visit the IRS website.

What if I am typically not required to file a tax return?

Social Security recipients who have not been required to file tax returns, will not be required to do so to receive their payments. People who typically do not file a tax return and are not Social Security beneficiaries, will need to provide their information to the IRS at the following website – Non-Filers: Enter Payment Info.

I have a reloadable prepaid card with a bank. Can I direct the payment to that account?

Yes, you will need your routing and bank account numbers to provide via the IRS online portal.

I have a bank account. Can I still receive a paper check?

Yes, but be aware that your payment will be slower than an electronic transfer. Paper checks may be sent out weeks after the electronic checks are sent. Many customers will prefer depositing the check through remote deposit capture where you can take a picture of your check through the Clear Mountain Mobile smartphone app to make the deposit from the comfort and safety of your home the same day the check arrives in the mail. The daily limit for mobile deposit is $5,000.

Alternatively, you can make the deposit at any one of Clear Mountain Bank’s ATMs that accept both cash and check deposits, including our ATM locations at Suncrest, Suncrest Towne Centre Kroger, Patteson Drive Kroger, Reedsville, Kingwood, and White Oaks.

If you want to deposit the check in person, you may do so through any of our branch drive-through locations.

Will college students be eligible to receive a payment?

A college student who is claimed as a dependent on the tax return of a parent is not be eligible for a payment, though a financially independent student would be. For complete eligibility information, please visit the IRS website.

What can I do to prevent fraudsters from accessing my funds?

A large amount of funds will be disbursed in the coming weeks to qualifying individuals. Accordingly, there is a risk for fraud of various types. The IRS has announced various ways individuals can be on guard against fraudulent activities.

It is important to remember that neither Clear Mountain Bank nor the federal government will ever contact you by telephone, text or email asking for your account information. Do not provide any banking information to anyone claiming to be “registering you for your relief payment.” This is a red flag.

For security reasons, the IRS plans to mail letters about Economic Impact Payments to taxpayers’ last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If you are unsure you are receiving a legitimate letter, the IRS urges you to visit to protect yourself against fraudsters.

What should I do if I receive an unsolicited email or text appearing to be from the IRS?

Those who receive unsolicited emails, text messages or social media contacts attempting to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward them to phishing@irs.gov. Taxpayers are encouraged not to engage potential fraudsters online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.


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