Second stimulus check: when the IRS sends your payment and why January 15th is important

President Donald Trump has finally done it signed into law the last COVID-19 emergency that includes one second stimulus control in front of up to $ 600 per person. There was already a tight schedule send out this second stimulus check, but one line may mean that some people have to wait weeks or even months longer to get paid.

Treasury Secretary Steven Mnuchin said last week that the second incentive payments could go to eligible recipients one week after the bill has been signed, first up to and including direct deposit, followed by paper checks and EIP cards. (Here’s how to get a estimate for your incentive payment, and what can happen to one third stimulus check in 2021.)

However, a short deadline set in the emergency relief law could require tens of millions to go the extra mile to claim their incentive money – read on for more information and come back to this story for updates.

Why is January 15, 2021 an important date?

January 15 is the closing date in the $ 900 billion incentive bill by then, the IRS and the U.S. Treasury should stop sending checks as part of this round of delivery. If you don’t have your full second stimulus check money before January 15, you must claim all or part of the missing amount when you file your federal tax return in 2021 through the Refund Discount. You can also claim any money that the IRS still owes you from the first round of payments.

People who receive their incentive payment via direct deposit are unlikely to be affected. But there is potentially an obvious downside for people who do did not file a direct deposit with the IRS.

Tying of the delivery of a second stimulus check Tax returns for 2020 will almost certainly delay delivery for many people, as wide variation in circumstances will result in some people filing taxes as early as January and others not filing taxes until April 15, or even later if they have to file for a deferment. It’s also not clear how quickly the IRS would process the payments.

Now playing:
Look at this:

Second stimulus checks: everything you need to know

3:22

How soon was the IRS able to deliver my second incentive payment?

Now that Trump has admitted and signed the new stimulus bill, the IRS and the Treasury Department are expected to make the first batch of payments through direct deposit possibly as early as this week, compared to the 19 days it took to set up the online tools and plan the distribution of the first stimulus check.

“Most of these will be direct deposits. We call them ‘postal checks’, but most will be direct deposits‘Mnuchin said on Dec. 21.’ It will be in three weeks. We are committed to getting money in the wallet immediately. So that will be in three weeks. ”

Since last summer, 75% of the first round of stimulus payments have been sent directly to people’s bank accounts direct deposit, the Treasury said, giving hope for the majority of people to receive their second payment by Jan. 15.

In the chart below, we map out a possible payment schedule for the second round of checks, plus a projection if Congress agrees a third stimulus check next year, after Biden will be sworn in on January 20.

How long can it take to receive your second stimulus check by mail?

Since the new incentive law sets a January 15th deadline for the IRS to send payments, people who receive their payments will second stimulus check in the mail – either as a paper check or a prepaid debit card – should look for a payment in the first three weeks of January, Mnuchin said on Dec. 21. According to the Treasury, 22% of payments from last summer were made with paper checks and another 3% with prepaid debit cards.

But after January 15 you will have to claim all the money the IRS owes you with your 2021 tax return. That could delay your stimulus control further, as the timing would depend on:

• When filing your taxes for 2020, the deadline can be April 15, unless you are applying for an extension.
• How long it takes for the IRS to process your tax return, which may include your second incentive check.
• If there are any complications in your particular scenario that could further delay your check.

We keep an eye on the situation, which is constantly evolving. Here are the latest updates of the second stimulus control and here’s how you can now calculate your estimated total for up to $ 600 per person.