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Second Round of Stimulus Checks – Here’s What’s Happening

Lawmakers passed a COVID-19 relief bill, which includes a second round of stimulus checks and unemployment benefits. We will continue to update this article as we receive information. Here’s what we know so far:

Stimulus check surrounded by bills.

January 8, 2021 Update: The U.S. Treasury Department and IRS are sending Economic Impact Payments (EIP) by prepaid debit cards to eligible recipients who have not received the payment by direct deposit or paper check.

If you have not received a direct deposit, the IRS and Treasury are urging recipients to continue watching your mail carefully for a paper check or prepaid debit card.[1]

According to the IRS, the form of payment for the second mailed EIP may be different from the first mailed stimulus payment. Some people who received a paper check last time might receive a prepaid debit card this time, and some people who received a prepaid debit card last time may receive a paper check.[1] If you previously received the first stimulus payment via a prepaid debit card, the second payment will not be deposited on the same card. The Treasury and IRS will issue new prepaid debit cards for the second stimulus payment.[2] You can visit EIPcard.com for more information about how to activate and use your card.

Tips for using your prepaid debit card: You can use your prepaid debit card anywhere Visa® Debit Cards are accepted – in-store, online or by phone.

  • Getting cash – To withdrawal funds without incurring any ATM fees, you need to use an in-network ATM. Typically, banks are not in the same network and can charge you a fee for using their ATM. Use the ATM Locator tool on the EIPCard website to find an in-network ATM near you.
  • Grocery stores – You can also use the ‘Get Cash Back’ option at some grocery stores to withdrawal funds from the card.
  • Gas stations
  • Paying bills

January 6, 2021 Update: The IRS provided clarification on economic impact payment recipients who had ACH payments erroneously sent to an account that is closed, inactive or a temporary account.[3] According to the IRS, if you checked the 'Get My Payment’ tool on IRS’s website after January 5, 2021, and the portal shows “Payment Status #2 – Not Available” then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.[4] Please consult the IRS Frequently Asked Questions, or visit the IRS Recovery Rebate Credit webpage to learn more.

Lawmakers passed a $900 billion stimulus plan in an attempt to provide coronavirus relief, which includes direct payments and unemployment benefits. The new bill is the second-largest federal stimulus package, and would help supplement the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to the American Bankers Association, the economic relief package includes [5][6]:

  • Second round of stimulus checks in the amount of $600 per adult and dependent children, subject to income limits
  • $300 a week for enhanced unemployment insurance benefits
    • Jobless workers would receive their regular state unemployment aid, plus $300 until March 14, 2021.[7]
  • Rental assistance and an eviction moratorium extension
  • $82 billion for education providers, like schools and colleges, including aid to help safely reopen classrooms
  • Increased Supplemental Nutrition Assistance Program and child nutrition benefits
  • Funding to support coronavirus vaccine distribution, testing and contact tracing efforts
  • Tax credit to support employers offering paid sick leave
  • An additional $284.6 billion in Paycheck Protection Program (PPP) funding for loans to small businesses. Please visit our Paycheck Protection Program page for additional information.

Second Stimulus Checks

The IRS and Treasury Department are delivering a second stimulus payment to eligible recipients as part of the coronavirus relief bill. These payments follow a first round of stimulus payments approved in March 2020. For the most up-to-date information, please visit the IRS Coronavirus webpage at IRS.gov/coronavirus

When and How Will I Get My Payment?

The IRS will calculate and automatically send eligible recipients the economic payments via direct deposit, paper check, or prepaid debit card.[8] The direct deposit payments may take several days to post to individual accounts. The Treasury Department and IRS are sending paper checks and prepaid debit cards to eligible recipients through January 2021. Mailed payments will require more processing and mailing time. Those who reside abroad may have longer wait times for checks as disruptions to air travel and mail delivery in some countries may slow delivery.[9]

How Much Will the Payment Be?

According to the IRS, eligible recepients will receive:

  • Individuals earning up to $75,000 will receive $600
  • Married couples earning up to $150,000 will receive $1,200
  • Payment of $600 for dependent children

These amounts are subject to income limits. Lawmakers are determining the eligibility of senior dependents claimed on an adult child’s tax return.[6] Please consult the IRS Questions and Answers for more information on eligibility.

How Can I Track My Payment?

The IRS developed a “Get My Payment” tool to check the status of your payment. You can visit the IRS Get My Payment FAQs for more information on accessing your payment, payment status, missing or unavailable payments, and more.

How Can I Change My Bank Account or Mailing Information?

According to the IRS, they are unable to change payment information, including bank account and mailing information. If you do not receive the payment or it’s less than you’re expecting, the IRS reports you can claim it on your 2020 tax return as the Recovery Rebate Credit.[9]

Looking for Ways to Use Your Stimulus Check?

Whether you’re using the money for bills, paying down debt, or want to increase your savings, consider these tips for making the most of your money.

Sources:

[1] Treasury issues millions of second Economic Impact Payments by debit card, IRS Newswire

[2] Questions and Answers about the Second Economic Impact Payment, IRS

[3] IRS Address EIP Processing Issue in Updated FAQs, ABA

[4] IRS Statement about Second Economic Impact Payments, IRS

[5] Congress to Vote on COVID-19 Relief Bill, ABA

[6] Bipartisan COVID-19 Relief Package, ABA

[7] Stimulus checks of $600 dollars are coming, CBS

[8] Treasury and IRS begin delivery second round of Economic Impact Payments to millions of Americans, IRS

[9] Economic Impact Payments on their way, IRS

 

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.