The third round of stimulus checks will start hitting bank accounts for eligible Americans as soon as this weekend, the IRS said late Friday.
“Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients will start receiving as early as this weekend, and with more receiving this coming week,” the IRS said in a statement.
In fact, the payments have already arrived for some people just one day after President Joe Biden signed the legislation into law.
In the coming weeks, more batches of payments will be sent via direct deposit and through the mail as a check or debit card, according to the agency. Some people may see the direct deposit payments as “pending” or as provisional payments in their accounts before the official payment date of March 17, the IRS added.
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The IRS announcement confirms what the Biden administration had said Thursday that people would start seeing direct deposit of the checks as soon as this weekend.
Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits, the IRS said. A payment date for this group is expected to be announced soon.
On Saturday, the IRS updated the “Get My Payment” tool on IRS.gov, which allows people to check the status of their payment. The IRS had originally said the tool would be updated on Monday.
The third round of Economic Impact Payments will be based on a taxpayer’s latest processed tax return from either 2020 or 2019. That includes anyone who used the IRS non-filers tool last year, or submitted a special simplified tax return. If the IRS received and processed a taxpayer’s 2020 return, the agency will make the calculation based on that return instead.
For those who received the first two stimulus checks, but didn’t receive a payment via direct deposit, they will receive a check or a prepaid debit card.
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The payments would amount to $1,400 for a single person or $2,800 for a married couple filing jointly, plus an additional $1,400 for each dependent child. Individuals earning up to $75,000 would get the full payments, as would married couples with incomes up to $150,000. Payments would decline for incomes above those thresholds, phasing out above $80,000 for individuals and $160,000 for married couples.
The third stimulus payment isn’t restricted to children under 17 like the first two rounds. Eligible families will get a $1,400 payment per qualifying dependent claimed on their tax return, including college students, adults with disabilities, parents and grandparents.
Under the American Rescue Plan relief package, the third stimulus check can’t be offset to pay past-due federal debts or back taxes.
Wells Fargo: Stimulus payments still days away
While some people have reported on social media that they have been notified that their stimulus payment is a pending deposit in their bank or credit union account, others have taken to Twitter wanting to know their status.
Wells Fargo was trending on Twitter Saturday after a tweet the banking giant sent out late Friday. “Customers who are eligible to receive direct deposit of their stimulus payment may expect it as soon as March 17, 2021,” Wells Fargo tweeted.
Still, some bank customers complained on what they saw as a delay and asked why competitor banks and credit unions customers were getting their payments earlier.
“Wells Fargo will process all of the direct deposits according to the effective date provided by the U.S. Treasury,” the bank tweeted and directed consumers to check their status using the IRS Get My Payment tool, which is scheduled to be updated Monday.
H&R Block also said March 17 is the day the IRS has told them most people will receive payments.
Credit: USA Today