Major banks are scheduled to start delivering $1,400 stimulus checks on Wednesday, part of the IRS' effort to send 100 million checks over the next 10 days. The timing of the checks has been an issue of concern to many people who are struggling with bills as the economy remains hobbled by the coronavirus pandemic.
The Internal Revenue Service said on Wednesday that it has delivered 90 million payments valued at $242 billion in its first batch of checks, while another 150,000 checks worth about $442 million were sent via mail. On Monday, IRS and Treasury officials said about 100 million checks would be distributed within 10 days.
Some people who bank at smaller institutions, like the startup bank Current, had received payments as early as Friday, one day after President Joe Biden signed the American Rescue Plan into law. Those banks had used their own balance sheets to credit the money into customer accounts rather than waiting for the official fund settlement date of March 17, which was set by the IRS.
That doesn't mean that all eligible people will receive the payments on March 17, however, given that the IRS will be distributing the funds in tranches, or groups, of payments over the next few weeks. In a few cases, some people may also see delays, such as in the case of people who filed paper tax returns. That's because the IRS is basing the payments on a person's most recent tax returns but remains backed up with processing paper forms due to the pandemic.
One year after the pandemic shut down the U.S. economy, millions of people continue to experience hardship. About 38% of people said their household income remains impacted by the crisis, according to a new study from TransUnion, a financial services firm. That represents a significant decline from a year earlier, when about 6 in 10 people said their household income had taken a hit, but it continues to show the ongoing financial struggles facing many Americans, said Charlie Wise, head of global research and consulting at TransUnion.
"It's material improvement, but it indicates over one-third of consumers are continuing to feel some sort of financial impact," Wise told CBS MoneyWatch. "That's a big deal."
To be sure, not everyone who is in line to receive a stimulus check has suffered either income or job loss, with about 4 in 10 people telling TransUnion that their income didn't change during the pandemic.
JPMorgan Chase on Wednesday said it has posted all the payments it has received from the IRS so far. But some Wells Fargo customers complained on social media that they were having difficulties logging into their online accounts, adding to their frustration about accessing their funds.
In a statement, Wells Fargo said it is working on the problems. "We apologize to our customers who may be experiencing issues with our online banking this morning due to high volumes," a spokesman said in an email. "This does not affect stimulus payments with March 17 effective date which were credited to accounts today."
Here's what you need to know about the timing of the checks.
Why did some people get checks before March 17?
As mentioned above, some customers at smaller banks received their checks as soon as a day after Mr. Biden signed the relief bill into law. That's because those banks made the decision to credit the funds to customer accounts immediately by using their own balance sheets.
But some bigger banks said that the timing of the payments was outside of their control.
Although the IRS started issuing payments over the weekend, the official payment date was set on March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch. Wells Fargo added that it was "not holding the funds" and that it would deposit the money into accounts on Wednesday morning.
Can I track my payment?
The IRS reopened its "Get My Payment" website following the passage of the American Rescue Plan, allowing people to track when they might receive their stimulus checks.
The IRS created this portal last year for the $1,200 stimulus checks directed by the Coronavirus Aid, Relief, and Economic Security, or CARES, Act.
When people check the "Get My Payment" site for the new $1,400 checks, they will see one of several messages.
First, some people will see that their payment has been processed, along with a payment date and whether the payment will be sent via direct deposit or mail. If a check is sent by mail, the IRS will either send a paper check or a pre-paid debit card.
Others may see a message that they are eligible, but their payment hasn't been processed and therefore there's no payment date available.
"Payment Status Not Available": What does it mean?
Another group of people may receive a message that reads "Payment Status Not Available."
That message can mean a couple of things, the IRS said. It may indicate that the tax agency either hasn't processed your payment or those people aren't eligible for payment, it noted.
What does "Need more information" mean?
Others may see a "Need more information" message, which the tax agency said means the payment was returned to the IRS because the U.S. Postal Service wasn't able to deliver the check. In that case, people can use the "Get My Payment" site to provide the IRS with bank information.
What if I didn't get the right amount?
Some people may get their checks quickly, yet discover that the payment amount is incorrect — that could most likely be due to their dependents or changes in income.
The law provides $1,400 per adult and dependent, as long as the household income falls below the income threshold for eligibility. In the current bill, single people whose adjusted gross income was below $75,000 and married couples with income below $150,000 will receive their full payments, as well as their dependents. Payments decline for earnings above that, cutting off entirely for single people earning $80,000 and $160,000 for married couples.
But some people may not get the right amount, especially if they haven't yet filed their 2020 tax returns. For instance, if a family had a baby last year but hasn't yet filed their 2020 returns, the IRS would base their payments on their 2019 returns — which wouldn't include their new baby. In that case, the family would receive $2,800 for themselves, but not the extra $1,400 for their child.
The IRS said people who are paid less than they should receive due to changes in their tax situation in 2020 will eventually receive the extra money. When they file their 2020 tax return, the IRS will check if they are owed more, such as in the case of a baby born last year. If that happens, the IRS will automatically issue the additional $1,400 check to the family, officials said.
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