There are many questions about the Economic Impact Payment stimulus, and RWB Tax Service will try to answer them for you. As we learn more information, we will add it here. So check back often!
There are many reasons why you might not have received your Economic Impact Payment yet.
The IRS is still releasing payments over the next few weeks, and yours may just take a little longer to get to you. Some people are having theirs directly deposited into their accounts, while others will be receiving a paper check in the mail.
There are a variety of reasons why people do not have to file taxes. If you traditionally do not file a tax return you may need to do so in order to receive your Economic Impact Payment. To determine if you need to file this year, Go to IRS.GOV
If you filed your tax return and received your refund using a loan advance bank product, let me try to explain what seems to be happening with your EIP Check.
When you began the process of getting a refund advance, you agreed to open an account with the providing bank. This account was open to issue you a loan (if applicable), process a payment to your tax professional, and then sending you the remaining proceeds (your tax refund). When your return was processed, the IRS was provided the routing and account number of that account. Once the IRS funded your refund you received the balance in the form of a direct deposit, check or card. Then the bank CLOSED that account.
Now that the IRS is trying to send out EIP funds, they have that closed loan account information on file, instead of your direct banking information. When the IRS used the routing and account number for the EIP, it is directed to a now closed account and those funds are sitting at the bank. The bank has no way to put the funds in the closed account. So the only option the bank has is to return the funds to the IRS.
Now here is where I have to speculate: if you can put your direct deposit information in the “Get My Payment” tool at IRS.GOV. Then you have a hope of getting this via direct deposit. If you can’t then it will change to a paper check mailed to the address of record. These checks are scheduled to start coming out the first week of May and will be sent on a rotation based on your Adjusted Gross Income. Those with incomes below 20,000 will come out first. The 30,000 the following week etc.
I hope this helps explain the process and helps you understand why your EIP may be a little slower getting to you, but it will come.
1. Social security income – Do you have dependent children under 17? Yes, you need to enter your information at IRS.gov.
2. Social Security income not direct deposited – Yes you need to enter your information if you want to receive the payment by direct deposit.
3. Receive Social Security Income by Direct Deposit- NO you do not need to file.
4. Income level below filing threshold – 12,200 single, 24,400 married filing joint – Yes you need to use the link
5. I have not provided my direct deposit information to the IRS – You will receive your payment by check.
6. I haven’t filed yet, If you filed 2018 you will still get your check. If you provide your banking information you will receive your payment direct deposit otherwise you will receive it by mail.
7. No Banking information provided to the IRS – you will receive your payment by check.
8. Incorrect banking information provided to the IRS – There will be a link mid-April to update that information. Do NOT use the non-filer link.
The payments will not have to be repaid if you receive too much. If you receive too little there will be reconciliation when you file your 2020 tax return.
These are just a few answers, I am sure this doesn’t cover every situation. If you haven’t filed yet, I urge you to file as soon as possible. If you are confused or can’t fill out the link from the IRS we are open to help you.
Available only on IRS.gov, the online application is safe and secure to use. Taxpayers only need a few pieces of information to quickly obtain the status of their payment and, where needed, provide their bank account information. Having a copy of their most recent tax return can help speed the process.
For taxpayers to track the status of their payment, this feature will show taxpayers the payment amount, a scheduled delivery date by direct deposit or paper check and if a payment hasn’t been scheduled.
They will need to enter basic information including:
Taxpayers needing to add their bank account information to speed receipt of their payment will also need to provide the following additional information:
Get My Payment cannot update bank account information after an Economic Impact Payment has been scheduled for delivery.
To help protect against potential fraud, the tool also does not allow people to change bank account information already on file with the IRS.
A Spanish version of Get My Payment is expected in a few weeks.
Don’t normally file a tax return? Additional IRS tool helps non-filers:
In addition to Get My Payment, Treasury and IRS have a second a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.
The Non-filers: Enter Payment Info tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The new web tool is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.
Did not file taxes: Enter Payment Info is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement, disability (SSDI), or survivor benefits and Railroad Retirement benefits. Additional information is available at https://www.irs.gov/coro…/non-filers-enter-payment-info-here.
No action needed by most taxpayers: Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement, or disability (SSDI), or survivor benefits and Railroad Retirement benefits.
We recommend you file them right away, and we can help!
There seems to be a delay for people who haven’t filed their 2019 taxes yet. Also, if you had any changes to your banking since filing in 2018, the IRS does not have updated information.
There has not been a definite answer released yet, but I suspect you will have to wait for the bank to reject your deposit and then you will have to enter the correct direct deposit information or it will convert to a mailed payment.
Right now there isn’t a way to correct that by phone, website or any instructions. There is a form you can complete, but there is not a person at the IRS to process that change.
If your business has already received a First Draw PPP loan, you may be eligible for a Second Draw PPP Loan. New companies that have not already received a PPP Loan are now allowed to apply for a First Draw PPP Loan.
Here are some critical updates listed by SBA for Second Draw PPP Loans:
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