Economic Stimulus Payments by Prepaid Debit Card

With Memorial Day fast approaching and the beginning of June right around the corner, many taxpayers continue to inquire about their economic stimulus payments. While taxpayers can track their payment online, the IRS announced that it is going to send out approximately four million stimulus payments via prepaid debit card.

These prepaid debit cards will be issued in lieu of paper checks to qualified taxpayers whose bank information is not currently on file with the IRS, and whose tax returns were processed by either the Andover or Austin service centers.

The prepaid card can be used anywhere VISA is accepted. Further, individuals can withdraw cash from in-network ATMs and transfer funds to personal bank accounts. There will also be a website with instructions to check the card balance without incurring a fee. The card offers the same consumer protections as traditional bank accounts with regards to fraud protection, loss and other errors.

The IRS continues to update its database with recent filings. We would implore anyone having difficulty with the “Get My Payment” application to confirm recent tax returns were filed and to ensure the address being typed in matches what the IRS has on file – capitalization and punctuation could result in information not being found on the site.

These payments figure to be available for the balance of 2020 and will then convert to tax credits on an individual’s 2020 income tax return.

If you have not received your payment and you have filed a tax return for 2019 or 2018, you may check the status of your payment by visiting the Economic Impact Payment page on the IRS website and use the “Get My Payment” application. You may also confirm if the payment will arrive through direct deposit or U.S. Mail.

If you are a non-filer, you may use the same link but select the “Non-Filers: Enter Payment Info Here” application.

The IRS created a page dedicated on how to use the multiple tools available to help you determine what to do to receive your Economic Impact Payment at https://www.irs.gov/newsroom/how-to-use-the-tools-on-irsgov-to-get-your-economic-impact-payment

 

 

DISCLAIMER:  The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.