Sunday, October 2, 2022

My Stimulus Check Went To The Wrong Bank Account

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Where Are The Trouble Spots

Some stimulus payments going to wrong accounts

We saw a great deal of frustration and confusion back in the spring and summer, as the federal government rolled out the first stimulus payments. Some people had to wait months on end. And we’re seeing some similar fears.

At the same time, several consumers said Tuesday that they personally did not have any trouble receiving the first stimulus payments in 2019 but they’re now facing some type of blip with the second payments now.

Just because things ran smoothly for you the first time apparently doesn’t mean you’re going to easily get the second stimulus.

Several readers emailed me Tuesday morning to tell me about a variety of problems that they’re facing now.

One huge issue: Many said the IRS site indicated that their Economic Impact Payment was deposited Monday into a bank account that isn’t theirs.

One reader said: “For me, my first check went to my bank account and the second shows an account I do not know.”

Another said the stimulus “appeared” in his bank account but disappeared somehow and his bank had no answers.

Some H& R Block customers in particular are upset about payments not ending up in their own bank accounts.

Some who are complaining used H& R Block for tax preparation services and had the fees withheld from their refund money. In the past, that process led to a glitch and some consumers had to wait to receive a stimulus check.

It is true that some people will get a reduced payment or no payment now.

Irs Again Depositing Stimulus Payments In Wrong Bank Accounts

    The Internal Revenue Service is once again depositing the latest round of Economic Impact Payments in the wrong bank accounts in a replay of problems experienced last year by many taxpayers.

    The problem stems in part from tax preparation companies that used temporary bank accounts in previous years where taxpayers could receive their tax refunds, while the tax prep companies took a portion of the refund for payment. The temporary bank accounts were later closed, but the IRS relied on the old information it had on file for those bank accounts when it began making direct deposits this week of the latest round of stimulus payments.

  • Specialty tax provisions in the new stimulus could mean a lot for businesses
  • The banks have to send back the deposits to the IRS, and taxpayers will have to update their information with the IRS directly. However, some are already complaining about the problems in receiving the much-needed payments in the midst of the economic crisis from the pandemic. They have been checking the IRSs online Get My Payment tool and finding that the deposits went to bank accounts that dont match their own. In a FAQ page about the Get My Payment tool, the IRS advises taxpayers that they may need to wait until later this year to claim a tax credit for the missing stimulus payment, but for those who are desperate for funds to pay their bills as soon as possible, that will be a long wait.

    When A Stimulus Check Goes To A Closed Bank Account

    If, on the other hand, the account was closed, you have little reason to worry though your payment will be delayed. According to the Internal Revenue Service, if a stimulus payment goes to an account that is closed, the bank will reject the money. Then, the Internal Revenue Service will look at the mailing address it has on file so the check can be sent by mail instead.

    The agency is also required to send you a letter in the mail within 15 days, providing information on how the Payment was made and how to report any failure to receive the Payment.

    But it would be worth your time to contact your bank and ensure that the check was in fact rejected. Then, go back into the Get My Payment portal to make sure your mailing address is up to date.

    Don’t Miss: What’s In The Stimulus Bill

    Did The Irs Send Your Second Stimulus Check To The Wrong Bank Account

    A second round of stimulus payments triggered a second round of complaints from many angry taxpayers who aren’t seeing their money quickly.

    So while many people began receiving the second stimulus payments in their bank accounts Monday, others only saw red.

    Some $600 payments apparently are going into the wrong bank accounts, according to frustrated taxpayers. Or checks are being mailed, others say, even though their first stimulus payments arrived promptly back in April without any trouble via direct deposit.

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    Some taxpayers are “floored” to discover that they might have to wait for a check or debit card in the mail or even wait to file their 2020 federal income returns before the second stimulus mess is resolved.

    Many are angry that the Internal Revenue Service and the U.S. Department of Treasury aren’t being upfront about the possible snags.

    “You’ve got more glitches going on than you’re leading people to believe, which is what I suspect,” said Deb Cataline, 65, who grew up in Flint, Michigan, but now lives in Knoxville, Tennessee.

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    Her son received his second stimulus payment through direct deposit by Jan. 4, as soon as the second stimulus payments became available, and he casually asked her if she received her money.

    You Used Turbotax’s Or H& r Block’s Refund Transfer

    Some Stimulus Checks Were Sent to the Wrong Account  Here ...

    During the last rollout of stimulus checks in January, the IRS erroneously sent stimulus payments to holding accounts at TurboTax’s and H& R Block’s partner banks. These accounts are used when a customer opts into refund transfer, meaning they give the company permission to take its fees out of their refund before sending the refund to their bank account.

    Both TurboTax and H& R Block said they provided the IRS with the correct bank accounts for customers this time around, so the mishap shouldn’t happen again but it’s not guaranteed.

    In any case, if a payment bounces back to the IRS then it will be re-sent in the mail as a paper check or prepaid debit card.

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    My Stimulus Payment Went To The Wrong Account

    The IRS has announced that that due to the speed at which they issued this second round of stimulus payments, they sent some payments to an account that may be closed or no longer active. So if you were caught in this situation, know that you are not alone. Fortunately per the stimulus legislation a financial institution must return the payment to the IRS. But the process to verify an incorrect account was used and for the IRS to re-issue/correct the payment s may cause extended delays in stimulus payments for some in this situation. Checking the latest payment status on the GMP tool is the best option or if no luck in getting the payment after a few months then file for it in your tax return before April 15, 2021.

    Several thousand people also reported that their first stimulus payment went to the wrong account based on the IRS stimulus payment status tool. This seems to be primarily related to people who filed their taxes through tax preparation services like H& R Block and TurboTax and received refund and reached an agreement with these services to receive an advance refund . Time magazine originally reported this issue, which was caused because the IRS didnt have direct deposit information for tax filers who used a refund transfer and received their money on a debit card. Naturally tax preparation companies are pushing back and saying this is an IRS processing issue.

    How Can You Correct Mistakes

    The IRS sends out Notice 1444 by mail within 15 days of making a direct deposit or sending a paper check. That letter will tell you the amount of your stimulus payment and how it was made. The letter also provides instructions on fixing issues with your payment.

    Don’t Respond to Telephone Calls or Texts About Your Stimulus Check

    The IRS will not call, text, or email you about your stimulus payment. The Federal Trade Commission is warning that thieves are posing as government employees to prey on stimulus payment recipients. These scammers may ask for your personal information or threaten you that if you don’t send the money back in the form of money transfers or gift cards, you’ll lose your drivers’ license. Ignore these communications.

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    Read Also: Have Not Received Third Stimulus Check

    My Stimulus Payment Was Too High

    Some individuals whose income increased too much in 2019 were not eligible for a full stimulus payment, but they got one anyway since the IRS based the payment on their 2018 taxes. Those individuals will not have to pay back the payment.

    In other cases, families were paid an extra $500 or $600 for children who were 17 or older . This could happen if the IRS took the number of children who qualified for the child tax credit in 2018 without updating children’s ages for 2019. But in other cases, it looks like the IRS took the number of dependents from a family’s 2018 tax return, without regard to their age. The IRS has said that those who received such overpayments will not have to pay them back.

    What Happens To Your Stimulus Check When The Irs Has Wrong Bank Info

    Woman’s Coronavirus Stimulus Check Sent to Wrong Bank Account | NBC10 Philadelphia

    Millions of American have already received the third, and likely last, round of stimulus payments. In the event youre eligible for the check but havent received it yet, the reason could be incorrect bank account information. Heres what that means and what you might be able to do about it.

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    The IRS states that if your bank account information has changed or was incorrect, you will not be able to simply update it in the Get My Payment tool. Instead, the bank will return your payment to the IRS, and then the IRS will mail you the payment by check at the address it already has on file for you.

    The easiest way to update an old or incorrect address is to file your 2020 tax return with your current address if you have not already done so, according to the IRS. The fastest way to do this is to file electronically.

    To get your payment reissued, the IRS advises to set up direct deposit with Get My Payment. Once the original payment has been returned to the IRS, you will likely see a Need More Information message in the Get My Payment portal. From there, you can choose direct deposit to a bank account, prepaid debit card or alternative financial product that has a routing and account number associated with it.

    Important to note: your bank account information in Get My Payment cannot be changed. The IRS says the bank account information in that tool came from one of the following sources:

    Recommended Reading: Who’s Eligible For Stimulus

    Payment Was Lower Than It Should Have Been Or Why Did I Not Get Extra Money For Having A Dependent / Child

    Remember, the IRS is basing your income off your 2019 tax filings. New parents will not receive a check for their newest member of the family because the stimulus checks are based on 2019 tax filings. However, these parents will be able to receive this money eventually, when they file their 2020 tax return.

    The second round of stimulus checks will be for $600 this time around for a qualifying individual. That is half of what they received in the first round of stimulus checks. A couple filing jointly would be eligible for $1,200, assuming their income qualifies.

    CALCULATOR: Here is a tool from Omni Calculator that may help you determine how much you might receive

    A couple or individual can also collect an additional $600 for each dependent under the age of 17.

    Just as with the first round of stimulus checks, there are income requirements. An individual must have made less than $75,000 on their 2019 tax filings, in order to receive the full $600 check. For additional income, the check starts to phase out, hitting zero at $87,000.

    Meanwhile couples will receive the full $1,200 check if they made less than $150,000 on their 2019 tax filings. This check will phase out above that income level, hitting zero at $174,000.

    —-

    Again Some Stimulus Checks Going Into Wrong Bank Accounts

    CINCINNATI It’s happening again. People are reporting their stimulus check deposited into the wrong account.

    Debbie Baker and her daughter were looking forward to getting their $1,400 stimulus checks and putting them toward a much-needed vacation far from their Northern Kentucky home.

    “Yes, it would be nice to hit the beach,” Baker said.

    But neither one of them has their $1,400 yet, and Baker just discovered the IRS sent hers to her old bank.

    “When I went to the IRS’s ‘Check my Stimulus’ page, it actually gave me my old bank account,” she said.

    That’s despite the fact she gave the IRS her new banking info back in January.

    Taxpayers frustrated with few answers

    The same thing happened with the last stimulus two months ago, as Niecie Boyd told me earlier this year.

    “The first payment was sent back in April to the correct last four digits of my account,” she told us at the time. “The second payment went out Jan. 4, but then last four digits I did not recognize, it wasn’t any of my accounts.”

    Boyd and millions of people saw their $600 stimulus sent to their tax preparers, such as H& R Block or Turbotax, instead.

    The IRS says it has fixed that glitch by now and does not believe it should be an issue this time.

    However, the agency says it is sending the $1,400 checks to the bank account that it had on file last year.

    If you changed bank accounts in the past year, like Baker and her daughter, it will bounce back to the IRS and will be mailed to you at a later date.

    Don’t Miss: How Soon Will We Get Stimulus Checks

    Second Stimulus Payments Final Payment Updates

    The IRS has confirmed it has issued all first and second Economic Impact Payments it is legally permitted to issue, based on information on file for eligible payees and their dependents. The GMP tool was last updated on Jan. 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments. If you havent yet received your payment and GMP is not showing payment details then the IRS is recommending you claim this via a recovery rebate credit in your 2020 tax return that you will file this year. Major tax software providers like Turbo Tax and Tax Act have updated their software to allow tax payers to claim their missing first or second stimulus payment as a recovery rebate with their 2020 tax filing.

    I am getting this question a lot when it comes to the recently approved $600/$1200 stimulus checks. But there are two different questions and outcomes here. One is not so great news, the other is better but means a delay in receiving your stimulus payment.

    You May Have Overlooked The Envelope With Your Check Or Card

    Stimulus Check Going Into Wrong Bank Account

    The problem: With the first payment, some people reported accidentally throwing out the envelope containing their check, not recognizing that it contained a stimulus payment.

    What to watch for: Pay attention to the mail and don’t assume it’s all junk. We recommend tracking your USPS letters for a heads up on what’s being delivered. For a paper check, watch for a white envelope sent from the U.S. Department of the Treasury. The memo field will read “Economic Impact Payment.”

    A prepaid EIP debit card will come in a white envelope with a seal of the U.S. Department of the Treasury. Once you open the envelope, the card itself will say Visa on the front and haveMetaBank, N.A., the name of the bank, on the back. The envelope will include details on how to activate the Economic Impact Payment.

    What next? You can cash the check right away, but the 5 million EIP card recipients will need to activate the card first. The checks will expire after a year.

    Also Check: What’s Included In The New Stimulus Package

    Stimulus Checks Sent To Wrong Bank Accounts For Some Americans Checking Irs Get My Payment Tool

    Some Americans say their government checks were deposited in the wrong bank accounts this weekend, forcing many of them to wait longer for the badly needed aid after struggling financially during the COVID-19 pandemic.

    Those taxpayers were surprised to see that the last four digits of their bank account numbers were incorrect when they checked their payment status on the IRS website, an issue that happened during the first two rounds of direct payments when technical glitches from third-party tax preparers caused delays for many filers.

    Some taxpayers are frustrated that they might have to wait for a paper check in the mail, while others still havent received a dime of the second payment that was supposed to arrive months ago.

    When USA TODAY contacted the IRS, the agency directed all questions to the FAQ page for its Get My Payment tool.

    If a filers bank information is invalid, or the account has been closed, the bank will return the payment to the IRS, and the agency will mail a check to the address on file, the IRS says on its website.

    Where is my payment? IRS updates ‘Get My Payment’ tool with information on new COVID-19 payments

    Lori Young, 52, didnt recognize the bank account destination for her third check.

    Young has received Social Security benefits via direct deposit for five years, and she hasn’t changed her bank account.

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