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Home / Tips and Tricks / This is the real reason why you want an instant deposit with your second stimulus check

This is the real reason why you want an instant deposit with your second stimulus check


More cash for incentive checks could quickly come in now that it’s legally signed.

Angela Lang / CNET

Almost a week after Congress overwhelmingly passed a bill to introduce a second stimulus control of up to $ 600 per person, President Donald Trump signed it into law, triggering a chain reaction that will culminate in tens of millions of Americans receive their second direct payment. Or total control of the household ends less than $ 600 or much more, there is one thing that every recipient must have in common: their second stimulus control first if they have made a direct deposit with the IRS.

Treasury Secretary Steven Mnuchin has said the IRS would send the first wave of incentive payments the next week. But the approval, and therefore delivery, of the second stimulus control has reached a delay that may extend or the $ 600 check rises to a ceiling of $ 2,000 per person instead.

It’s not clear whether the U.S. Treasury and IRS will start organizing a $ 600 incentive check or wait to see if Congress instead approves a $ 2,000 direct payment change before the money is sent . Either way, the first and potentially largest group of people will receive their money through a direct deposit into their bank accounts. Those who don’t would one paper check or EIP card by post – but there is an important catch that is written in the language of the $ 900 billion stimulus portion of the bill, one that could mean your incentive money arrives weeks or months after someone else’s.

We’ll tell you about that, as well as what we know about signing up for direct deposit with the IRS and changes to your registered banking information. For more details, here’s how calculate the total of your second stimulus check under the current bill, and here’s who may not be eligible for another payment. This story is regularly updated with new information.

Direct deposit will deliver your stimulus check faster. If you don’t, you may have to wait a long time

Since the initial check, the benefits of providing your bank details to the IRS for a direct deposit are clear. About 80 million people received their stimulus payment within the first week, of the estimated 170 million who received an initial stimulus payment. So there is a definite benefit to setting up direct deposit if you don’t already have it (more on this below).

But while there can be an advantage if you sign up, there is also a huge downside if you don’t. The language of the bill specifies a January 15, 2021, cut-off for the IRS to send stimulus checks. Assuming the bill was passed on the first chance Trump got it to sign it, the Treasury and the IRS would only have about three weeks left to send all possible checks. At a rate of 5 million to 7 million paper checks the IRS can process in a week, it seems clear, according to a June GAO report, that the IRS would not be able to reach tens of millions of people by January 15. .

So what then? Anyone who doesn’t get a second stimulus check sorted by that date should take the extra step of claiming it as a Recovery Rebate Credit as part of the 2020 tax season, presumably with exceptions for humans not usually required to file taxes.

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Second stimulus checks: everything you need to know


That means the timing to get paid would vary wildly depending on when you can complete your taxes and how quickly the IRS would process your tax return. For example, people who apply in February receive their second incentive money months earlier than people who apply in April. It is not clear whether applying for a tax extension would further slow things down.

The downside for people who have not set up a direct deposit or are doing it quickly is clear.

What if you don’t have a bank account?

According to the Urban Institute, people with bank accounts and direct deposits (disproportionately white) were more likely to get their first stimulus check in late May than people who identify as black, Hispanic, or below the poverty line. This was directly linked to groups who were more likely to have bank accounts and who had submitted that information to the IRS to facilitate direct deposit tax returns.

Bank of America, JPMorgan Chase, Wells Fargo, and several other major banks are now offering more affordable check-free bank accounts as part of a program to make it easier for people to get bank accounts.

read more: Sorry, not everyone gets a second incentive payment. What we know so far


You may need to set up a direct deposit with the IRS if you haven’t already.

Sarah Tew / CNET

How the IRS obtains your bank account information for stimulus checks

For the first round of payments, the IRS used direct deposit information from one of the following places:

  • Your last tax return filed if you received a direct deposit refund in 2018 or 2019.
  • The bank details that you have provided via the Get My Payment online tool.
  • The bank details you provided via the Non-Filers tool: enter payment details here.

What information does the IRS need to set up direct deposit?

The IRS has not yet opened up its Get My Payment tool to new direct deposits, but when it comes time to provide your bank information, have your bank account type and routing and account numbers ready. There are several ways to find this bank information.

Banking website: Your bank’s website may show your routing and account numbers. Log in to the account you want to use and find the numbers you need.

Banking app: If your bank has an app, it can show you your account and routing numbers. In the app, tap the account you want to use to see the account and routing numbers.

Printed check: At the bottom of your check, you will likely see three sets of numbers: The first nine-digit string is your routing number. The second series of 8 to 12 numbers is your account number. The third set is the one you don’t need for direct deposit as it is the individual check number.

Check out this IRS page for more help finding your routing and account numbers.

Can I still change or correct my bank information with the IRS?

While you could use the Get My Payment and Non-Filers tools to provide the IRS with your bank information, the IRS has said it doesn’t allow people to change the direct deposit information for an incentive payment it has registered. This is a protection against fraud.

The IRS said if your bank information has been changed or incorrect or if the bank account has been closed, the bank will decline the deposit and the federal agency will mail the payment to the address it registered. For assistance, you can try calling the IRS phone number at 800-829-1040. For specific questions about incentive payments, call the IRS helpline number here: 800-919-9835.

If you’ve moved, you can provide the IRS with your new postal address.

Does the IRS have a deadline to provide my bank information?

For the initial check, the IRS set a deadline of May 13 to provide the agency with your bank details – this was about a month after the initial direct deposits were made. If you missed the deadline, you received your check in payment by mail or as a prepaid debit card. We can expect a similar cutoff from the IRS, but we haven’t heard any details yet.

For more information about the checks, here how quickly the IRS can send your payment, how calculate how much money you could get in a second stimulus check and everything you need to know stimulus qualifications now.

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