Some delayed stimulus payments may not arrive until you file 2020 taxes
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A majority of eligible Americans have already received their $600 pandemic stimulus checks. The Treasury has paid out $112.3 billion so far in the second round. But now the IRS says millions may not get the money until they file their tax returns this year.
If you check the IRS’ “Get My Payment” tool for a status update and don’t see the money, that’s an indicator that your payment is not coming, the I.R.S. said.
What you’ll need to do is claim a Recovery Rebate Credit when filing your 2020 taxes.
To get stimulus payments out quickly, the IRS has been sending out paper checks and direct deposits based on information from last year’s tax returns.
But there’s a glitch: For some taxpayers, the IRS has out-of-date bank account information.
One of the principal ways that happens is if someone files through an online tax preparation service, and that service opens a temporary account in order to collect their fee from refunds. The IRS said that temporary and inactive accounts are leading to electronic deposits bouncing back.
It’s unclear if the agency is also encountering problems with mailed checks.
During the first round of direct payments back in the spring, if an error occurred, the agency would try to mail people checks or debit cards, or have them update their bank account information. That won’t happen this time around. With the next tax filing season about to start, the IRS says it doesn’t have the time to reissue payments when there’s a problem.
The IRS wants taxpayers that don’t get stimulus money this month to claim that Recovery Rebate Credit instead on their next tax returns.
COVID-19 Economy FAQs
What are the details of President Joe Biden’s coronavirus relief plan?
The $1.9 trillion plan would aim to speed up the vaccine rollout and provide financial help to individuals, states and local governments and businesses. Called the “American Rescue Plan,” the legislative proposal would meet Biden’s goal of administering 100 million vaccines by the 100th day of his administration, while advancing his objective of reopening most schools by the spring. It would also include $1,400 checks for most Americans. Get the rest of the specifics here.
What kind of help can small businesses get right now?
A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.
What does the hiring situation in the U.S. look like as we enter the new year?
New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.
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