The IRS only has til Friday to send your $600 stimulus check. What you need to know

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By the end of the work week, the IRS and US Treasury must stop sending second stimulus checks. Why? It’s actually part of the legal language written into December’s stimulus bill. But surely there will be checks for $600 or far greater that for one reason or another don’t get calculated by the IRS or issued by the Treasury by the Jan. 15 deadline for stimulus checks.

Or maybe the checks will run into an issue like this one and have to be returned to the IRS. So if you qualify for a stimulus check and didn’t get your payment, there are some things you might want to understand. For example why does this cutoff exist and how that sets your checks behind if you don’t get your stimulus money by then.

We’ll also explain what you need to know about receiving stimulus money through direct deposit, paper checks and EIP cards. Also, we’ll go over the second stimulus check payment timeline from here and how a delay could affect you. Here’s how to track your stimulus check status, follow your payment arrives to your mailbox and what we know about a third stimulus check for up to $2,000 per person. This story recently updated.

Why is there a Jan. 15 stimulus check deadline?

The writers of the legislation didn’t explain why they chose a Jan. 15 cutoff date to send stimulus payments, but that only gave the IRS and Treasury a total of 17 days to send out over 100 million stimulus checks. That’s two days less than the time it took for the IRS to begin sending the first stimulus check after that bill passes in March (it was 19 days, for the record.)

Tax season, which heavily involves both the IRS and Treasury, typically begins in mid-to-late January and continues through April 15, and may be a factor in the Jan. 15 deadline.

What happens to the stimulus check delivery timeline if your payment doesn’t make the cutoff?

If you don’t receive your full second stimulus check money shortly after Jan. 15, it doesn’t mean you’re out of luck claiming your rightful stimulus money. But it does mean your payment could be delayed by months.

That’s because you’ll need to take the extra step of claiming all or part of the missing amount when you file your federal tax returns this year as a Recovery Rebate Credit. You’ll also be able to claim any money the IRS still owes you from the first round of checks as part of the credit.

Some people who received their stimulus payment through direct deposit have run into problems. If you experience any issue or hold up with any payment method — again that’s EIP cards, paper checks and direct deposit — it means you’ll have to take the extra step of filing a claim.

It isn’t entirely clear how quickly the IRS would process the Recovery Rebate Credit, but the process of making a second stimulus check dependent on the 2020 tax return will almost certainly delay the payment for many, especially since circumstances mean some people will file taxes as early as January and others as late as April 15, or even later if they need to request an extension.

Two smart ways to track your $600 stimulus payment

The IRS has reopened its online Get My Payment tracking tool with information on the second round of payments. With the free-to-use portal, those who qualify for a check can see the status of both the first and second payments. The website is available in English and Spanish. You can also use a free tool from the USPS to follow your check’s movements to your mailbox.

Direct deposit payments may still happen through Friday

The IRS sent the first direct deposit payments on Dec. 29, and as far as we can tell, the IRS and Treasury are continuing to processing bank account transfers. People who have run into issues with direct deposit that aren’t resolved by Friday need to address them during tax season 2020.

While most eligible individuals don’t need to do anything to receive the second payment — provided the IRS already has your banking or mailing information on file — you also can’t sign up for direct deposit or do much to correct your banking information on file if you closed an account. If the IRS can’t deliver your payment, you’ll need to claim it on your taxes…..Read More>>

 

Source:- cnet