Thursday, January 20

US Government Announced IRS May Deposit First $ 1,400 Checks This Weekend; but is it really possible?

US Government Announced IRS May Deposit First $ 1,400 Checks This Weekend;  but is it really possible?

Millions of Americans are looking forward to the arrival of the third $ 1,400 stimulus check.

Photo: Jeff Fusco / Getty Images

With the signature of the president Joe Biden to the named stimulus package “American Rescue Plan” containing, among other provisions, checks for $ 1,400, the Treasury Department and the Internal Revenue Service (IRS) they are allowed to start disbursing payments.

After the president’s signature this Thursday, a day before what had been announced, the government is betting that some direct deposit beneficiaries will start receiving payments over the weekend.

“People can expect to see deposits in their bank accounts as soon as this weekend,” stated lWhite House Press Secretary Jen Psaki, in an exchange with journalists.

“This, of course, is only the first wave,” Psaki clarified, noting that payments to eligible Americans will continue for the next several weeks.

Sounds good. But, in practice, how does the disbursement of stimulus checks work? Can payments really be sent this weekend?

The answer will depend on several factors.

At the moment, the IRS has not ruled, not even through its website, on the logistics of sending the new checks, the date of the first deposits and the time that has been established to complete the sending of most of the checks. the payments corresponding to the third round.

New full payment eligibility rules

First of all, the IRS must comply with the new provisions contained in the $ 1.9 billion law passed in the United States Congress that include changes in eligibility levels.

With the alterations to the law made in the Senate last weekend, adults who annually earn $ 75,000 or less will receive the full payment of $ 1,400. In the case of married couples that file taxes, that figure rises to $ 150,000 or less, while for heads of household the applicable amount for the total payment is $ 112,500 or less.

Adults who earn more than $ 80,000 a year; couples who earn more than $ 160,000, and female heads of household with incomes greater than $ 120,000, will not receive payments.

People who fall in the middle of these figures will have their payment phased down to zero.

This implies that the IRS must catch up with the new thresholds, and it is unclear how long that process will take.

Second round details

Last December, as part of the second round of stimulus payments of $ 600, it took the agency between two and three days to make the first money deposits once the law was signed. However, the office was not processing tax returns or tax season as is the case now.

Additionally, in the case of electronic money transfers to bank accounts, it is one thing for the IRS to deposit the funds and another for the recipients to be able to use the credits.

In the last round, although the deposits were made in the week of December 28, it was not until January 4, the official payment date, that the beneficiaries were able to withdraw the funds and make use of them.

Another detail to consider is that the announcement of the Biden Administration comes at the beginning of a weekend, which could complicate the agility of the processes.

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