Coronavirus $1,200 stimulus checks ‘to be direct deposited next week’ but some paper checks won’t arrive until SEPTEMBER – The Sun
THE coronavirus $1,200 stimulus checks will be direct deposited next week – but some paper checks won't arrive until September, reports say.
These emergency payments are a part of the $2.2trillion package to prop up the US economy, which has been pummeled by COVID-19-related layoffs and business closures.
The Treasury Department is taking the first step Friday getting the payment to millions of Americans with direct deposit bank accounts, Politico reports.
For 100 million Americans who don't have these accounts, around 5 million paper checks will be rolled out in early May over the course of 20 weeks, insiders told the publication.
President Trump reportedly said he wanted his signature on the checks after signing the bill into law last month.
But industry sources say it could take five months for the paper check to actually get there after US Secretary of the Treasury Mnuchin said most Americans would get them in two weeks on April 2.
The current step involves the department clearing all those eligible direct deposit payments today before the IRS begins processing them Monday.
The payment should show up in people's accounts by Wednesday, according to Politico.
“That timeline is the update I am aware of and is accurate,” a financial industry source said, while another noted it was “based on conversations with Treasury.”
This cash injection to prop up the flailing economy will be on a sliding scale from $1,200 per adult, $2,400 for couples and an extra $500 for kids.
But anyone who earns $75,000, or $150,000 for couples will be phased out.
Single filers who earn $99,000, head-of-household filers earning $146,500 with just one kid, and joint filers without children who earn more than $198,000 get nothing under the emergency package.
'GET MY PAYMENT'
The IRS will launch a "Get My Payment" online application on April 17 to hurry up the complex process.
A spokesperson told CNBC this “will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them."
This will enable taxpayers who filed returns in 2018 or 2019 to fill out their direct deposit information if it wasn't listed on their tax returns.
It isn't clear how low-income earners who don't have bank accounts will access their check as some banks don't want to risk fraud and have cited social distancing guidelines.
Last week, the Treasury said people who get Social Security recipients and don't usually file returns don't have to in order to get a direct payment.
Today, they launched a new website with the Treasury where people who don't have to file taxes can enter payment information to get their relief check.
This applies to US citizens and permanent residents who have a valid Social Security number; could not be claimed as a dependent of another taxpayer, and had adjusted gross income under certain limits.
The checks are part of the rescue package to support businesses, rush resources to overburdened health care providers and help struggling families and individuals during the deepening coronavirus epidemic.
But negotiations over the $250 million "paycheck protection" package has emerged as Democrats threaten to block it unless more funds are added for hospitals as well as state and local government.
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