Stimulus Checks Update: Here’s the Deadline for Second Checks
If the IRS hasn’t sent your second stimulus payment by this Friday, you could be waiting a while for that $600 check.
The agency is battling the January 15 deadline to secure the latest round of economic impact payments – which have been approved by Congress and the president in a coronavirus relief package in late December — to eligible Americans. Once the time is up, your best plan may be to claim the Salvage rebate credit when you do your 2020 taxes this spring.
The good news is that most of them have already been released: according to a newsletter of the House Ways and Means Committee, the IRS has sent 113 million direct deposits, and an additional 34 million paper checks and debit cards are “to be delivered over the next two weeks.” The bad news is that there were several problems in the process.
Perhaps the biggest stimulus check error was a mix-up in which the IRS sent direct deposits to closed bank accounts that were created by tax preparers like H&R Block and TurboTax. These payments are now being reissued. But it’s not hard to find people on Social Media who again have not received their dunning check.
If you’re one of them, here’s what you need to know.
The January 15 stimulus check deadline is mostly about the IRS (not you)
It has to do with the Consolidated Appropriations Act 2021 – the huge spending bill that includes $900 billion in coronavirus relief.
the text includes a section on the timing of stimulus checks, called “recovery rebates.” It spells out the deadline pretty clearly, saying that “except as provided in paragraph (II), no refunds or credits will be made or authorized under this paragraph after January 15, 2021.” (In case you were wondering, this sub-clause refers to how US territories handle taxes.)
Basically, the government wanted to get the money into Americans’ pockets quickly, so it set a deadline.
What to do if you haven’t received a stimulus check yet
Do not panic. The payment might still appear; give it a few more weeks. Use the Get My Payment Tooland watch it to post for a white envelope with a Treasury Department seal.
The House bulletin states that “if you have not received a direct deposit payment by January 15, 2021, or a paper check or debit card by the end of January, you can contact your congressman for help trying to fix the problem.” If tax time is coming and you still haven’t received your second stimulus check, he notes, “you’ll still have the option to claim EIP on your statements”.
What is Recovery Rebate Credit?
Technically, the first and second stimulus checks are advances on a special pandemic tax credit called the Salvage rebate credit. If you got the full amounts — $1,200 per adult last year and $600 this month, plus a supplement for dependents — you’re good to go. If you didn’t, or if you believe you are owed more, the IRS will correct this issue when you file your 2020 tax return.
To do this, you can claim the recovery rebate credit on your Form 1040 or 1040-SR. (There will also be a spreadsheet where you can work out exactly how much stimulus money you’re entitled to.)
If you are eligible, the IRS will subtract your raise from the amount you owe or add it to your refund.
How long will the second stimulus check take if you have to claim it on your taxes?
This is the crucial question here, given the gravity of the current economic situation. The 2021 filing season has technically not started yet. Last year, deposit season for individuals started on January 27th. In 2019 and 2018, it started on January 28 and 29 respectively.
But even if you file your 2020 taxes the first second you can, you won’t get your refund right away. Although the IRS sends almost all refunds in less than 21 days, processing takes time. You are looking at February at the earliest.
FYI: People who submit their taxes electronically and choose to get their refunds by direct deposit usually get them the fastest. The IRS recommends that you do both so that you also receive your stimulus payments quickly.
More money :
What to do if you haven’t received your second stimulus check yet
Your second stimulus check may arrive in the mail even if your first was a direct deposit
How to decide on the “best” way to use your stimulation control