Stimulus checks: Delayed payments for millions of Americans expected to land next week

Millions of Social Security and other federal benefits recipients who are still waiting on their stimulus checks will have their payments processed in the next week, according to the Internal Revenue Service (IRS).

“If no additional issues arise, the IRS currently expects to complete that work and to begin processing these payment files at the end of this week," the IRS stated on Tuesday. "Because the majority of these payments will be disbursed electronically – through direct deposits and payments to existing Direct Express cards – they would be received on the official payment date of April 7.”

The delay affected Social Security recipients and other beneficiaries who did not file their 2019 or 2020 taxes or did not use the IRS 'Non-Filer' tool for direct payments. The IRS received data about the federal benefits recipients last Thursday after a delay which Democratic lawmakers blame was caused by Social Security Commissioner Andrew Saul, an appointee of former President Donald Trump.

The payments that will be sent out this week are to Social Security, Supplemental Security Income (SSI), and Railroad Retirement Board (RRB) beneficiaries while the IRS is continuing to review the data for Veterans Affairs (VA) benefit recipients and is yet and currently expects to disburse their payments in mid-April.

A total of 127 million payments worth $325 billion — more than 70% of the $450 billion earmarked for stimulus payments — have been disbursed as part of the first two batches of the latest stimulus direct payments. More batches of payments will be issued in the coming weeks as direct deposits or as mailed checks and prepaid debit cards. The majority of the third round of stimulus checks will be directly deposited in Americans' bank accounts.

Who gets a stimulus check?

The third round of direct payments includes $1,400 per eligible individual plus a $1,400 bonus per dependent. Around 158.5 million households are expected to receive a payment.

A single filer making up to $75,000 will receive the full payment, while those earning up to $80,000 will get a reduced amount. Joint filers making up to $150,000 will get the full $2,800, while those earning up to $160,000 will receive a smaller amount. Previously, the phase-out thresholds were $100,000 for single filers and $200,000 for joint filers in the House version.

Eligibility will be based on your most recent tax return and your adjusted gross income. For the third round of checks, the IRS will use your 2019 or 2020 tax return to determine if you qualify for the direct payment.

Social Security beneficiaries, Disability Insurance beneficiaries, Supplemental Security Income recipients, Railroad Retirement Board beneficiaries, and Veterans Administration beneficiaries all are eligible for the payment even if they didn’t file a 2019 or 2020 tax return.

Eligible taxpayers who used the IRS Non-Filer tool for the first round of checks will be treated as providing returns and will also receive payments.

Additionally, Americans who qualify for the stimulus payment and have dependents will get an additional $1,400 per dependent. The bonus can be claimed for college students, disabled adults, and other adults who are dependents. Previously, parents or guardians could only claim the bonus for child dependents under 17.

Deceased people may also receive a payment. Checks will go to all eligible taxpayers who were alive as of Jan. 1, 2021.

Who doesn't get a check?

Those without a Social Security number and nonresident aliens — those who aren’t U.S. citizens or U.S. nationals and don’t have a green card or have not passed the substantial presence test — are not eligible for the direct payment.

Married taxpayers who file jointly where one spouse has a Social Security number and the other doesn’t will get one $1,400 payment, in addition to $1,400 for any child with a Social Security number.

Taxpayers with Individual Taxpayer Identification Numbers (ITIN) aren't eligible for the payments.

How will the government send you the stimulus check?

The IRS will use the direct deposit information you provided from the taxes you’ve filed for 2019 or 2020.

You may be able to use the IRS’ Non-Filers tool to provide your information like the first round. But so far, the IRS has not announced whether that tool will be available if this stimulus bill is passed.

The tool was for eligible U.S. citizens or permanent residents who had gross income below $12,200 ($24,400 for married couples) for 2019 and weren’t required to file a 2019 federal tax return.

If you have no direct deposit information on file or if the account provided is now closed, the IRS will mail you a check or pre-paid debit card instead.

If you received no payment and you think you’re eligible or you got the wrong amount, you’ll be able to claim it on your 2021 tax return.

How can I track my payment?

Americans can now check the status of their third stimulus check using the IRS’s online tracking tool ‘Get My Payment.’

The tool allows Americans to follow the scheduled payment date for either a direct deposit or mailed payment. It’s an online app that works on desktops, phones, and tablets and doesn’t need to be downloaded from an app store. To use the tool, you need to provide basic information:

  • Social Security number or Individual Tax ID Number (ITIN)

  • Date of birth

  • Mailing address

The tracking tool will no longer show the status of the first or second round of stimulus checks — the $1,200 payment under the CARES Act and the $600 payments under the December $900 billion stimulus deal. To find the status of those previous rounds, you must create an account.

Read more: Here's how you should use your tax refund in 2021

If your payment is delivered by direct deposit, the tool will show when the direct deposit is expected to be made or when it was delivered along with the bank account it went into.

If you receive the message “Payment Status Not Available,” the IRS may not have processed your payment yet or you may not be eligible for a payment.

Will I get the dependent bonus for a newborn?

If you had a baby in 2021 and meet the rest of the eligibility criteria, you can claim the additional $1,400 per child when you file your 2021 taxes.

If you had a child in 2020 and your return has been processed, you should automatically get the additional payment. If you haven't yet filed your 2020 taxes or they haven't been processed by the IRS by the time the payments are issued, you can claim the dependent bonus on your 2021 taxes

Do you have to pay back the stimulus check?

No, you don’t have to pay it back. It also doesn’t reduce any refund you would otherwise receive.

“No, there is no provision in the law requiring repayment of an Economic Impact Payment,” the IRS website said about the first round of checks.

If your income dropped in 2020 compared with 2019, you may now be eligible for the payment or a bigger payment if you have already filed your taxes and they have been processed by the IRS.

If your payment is too high based on your 2020 income and you still haven't filed your 2020 taxes, you’re not responsible for paying back the difference.

Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova

Read more:

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  • Senate passes Biden's $1.9 trillion relief package including $1,400 stimulus checks

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  • Read more personal finance information, news, and tips on Cashay

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