The Internal Revenue Service sent nearly 80% of the second round of stimulus checks last week. However, errors ramp up with the direct deposit.
Why are you not receiving your stimulus check?
The federal agency is authorized to send the new sets of stimulus payments, but due to an electronic transfer glitch, not every qualified American has received it yet. According to tax preparation firms like TurboTax, H&R Block, and Jackson Hewitt, the IRS issued direct millions of stimulus payments through direct deposit, routed to ineligible or wrong bank accounts.
Last week, Jackson Hewitt released a statement saying that millions of stimulus payments were sent to the wrong accounts because of an IRS error. The mistake could lead some people not to receive their payment on time. Meanwhile, TurboTax confirmed the problem, but said Monday that payments are now going to the correct accounts.
The IRS also admitted the error, saying there might be issues with the electronic payments with the second stimulus checks. Some payments might no longer be active or unfamiliar. The account might be closed because of the law that implements the IRS to send the Economic Impact Payments until January 15.
As of January 8, 2021, $5 billion in stimulus payments were returned for different reasons, as per the Committee for a Responsible Federal Budget. Last year, the U.S. Treasury, the IRS, and tax preparation companies had the same problem with the first round of stimulus payments.
One of the agency's issues is the January 15 deadline, which leads to a rush distribution of stimulus payments ahead of tax season. Through electronic transfer to bank accounts, the Treasury Department made approximately two-thirds of the second stimulus payments to bank accounts of eligible people, the Wall Street Journal reported. Besides, almost eight million EIP prepaid debit cards are set to go out as well. Here is another scenario that might determine why until now, you are not receiving your stimulus check, as per CNET:
You used a tax-preparation service to file your 2019 taxes
The U.S. Treasury and IRS sent the first stimulus checks to bank accounts; some people who used tax prep services, such as TurboTax and H&R Block, might run into trouble with their stimulus payment through the direct deposit. The incident occurred due to the information the IRS had on the file Americans provided.
The IRS confirmed there might be a similar problem with the second stimulus payments if you are using a tax preparation service. In a statement this week, the IRS said they are working with the tax industry partners if the second stimulus check was sent to a temporary account or is no longer active. The federal agency builds options on how to get payments to individuals as quickly as possible. Meanwhile, TurboTax, H&R Block, and Jackson Hewitt alerted their customers regarding the similar issues sought with the second round of payments.
The bank account you filed with the IRS has been closed
A temporary bank account the tax preparer has set is not just why the IRS does not have validated direct deposit information for you. You won't receive your stimulus payment if you have closed the bank account the IRS has on file for you.
The IRS claim that there are many ways to find your bank information, including your 2019 tax return, the IRS' Get My Payment app if you used it. The banking institution would return the payment if the agency ran out of date for the bank deposit. Therefore, you will need to claim your stimulus money on your 2020 tax return as a Recovery Rebate Credit. Your benefits are deposited to a Direct Express card, so your stimulus payment will be deposited to that card, the IRs explained.
You are not eligible for the second stimulus check
According to USA Today, even if people are expected to receive smaller checks than the first round of COVID-19 relief bills called CARES Act, this round still owes you $600 for each adult and qualified dependent child.
If you used the 'Get My Payment' tool to check the status of your stimulus payment, and you noticed a message saying, "Payment Status Not Available," it might mean that you are not eligible to receive the second round of stimulus payment. It can also be that your adjusted gross income last year is high enough that you don't qualify now.