As a result of the American Rescue Plan Act being signed into law, millions of Americans will be receiving $1,400 checks from the IRS to help them deal with the economic burden caused by the coronavirus pandemic.
Officially, checks will start going out on March 17, although people with direct deposit accounts may already see the money in their bank accounts as pending or provisional deposits. People without direct deposit set up should begin to see their checks over the coming days and weeks. Here is what you need to know about your stimulus check:
How Will I Receive My Stimulus Check?
If you have direct deposit set up with the federal government, it should be deposited directly into your account. However, if you do not already have direct deposit set up, you will instead receive the stimulus check in the mail. Some people may also instead receive the money through an Economic Impact Payment (EIP) Card, which is a sort of prepaid debit card which must be activated online.
How Are These Payments Being Calculated?
While the stimulus payments are potentially up to $1,400 per person, the fact is that the exact amount of your payment will depend on a number of factors, including your income, the number of dependents you have, and whether you are filing as an individual or jointly. If you have not yet filed your tax returns for 2020, the IRS may instead base your payment on your tax return information from 2019. In addition, there may be other factors that limit or delay your payment.
What if I Have Direct Deposit and Have Not Seen The Money in My Account?
The stimulus checks are being processed in batches, and thus not everyone will be receiving their money right away. In addition, given the proximity to tax day on April 15, there will likely be delays at the IRS. You can track your stimulus payment with the IRS’ official tool here.