Some people will receive their payment using a debit card for financial impact payment.
Photo: RIZWAN TABASSUM / AFP / Getty Images
After taking several months to pass the American Rescue Plan in Congress, President Joe Biden announced that his administration has set a goal send 100 million payments over the next ten days, an announcement that comes amid a wave of heavy work and delays in IRS tax returns.
The rescue plan includes a round of stimulus checks for $ 1,400 and the White House confirmed that the first wave of payments began to reach the bank accounts of some citizens since last weekend.
Not only are the tax authorities in charge of distributing direct payments, but they are also monitoring the tax returns filed for 2020. The IRS will use three different methods of getting money to people And the question to answer is whether the payment of your stimulus check will reach your bank account or by mail.
Who will receive the stimulus check in the form of direct deposit?
With a huge workload the IRS will look for the most efficient way to distribute the stimulus check money and in most cases, it will be through a direct deposit in the beneficiary’s bank account.
The IRS will have most people’s bank account details from the most recent tax returns, so most payments will be made this way. Those who file taxes or receive Social Security payments will receive their payment through this method.
This format uses electronic payment and will be by far the fastest way to get the money. The American Rescue Plan was signed last Thursday and by Friday some had already confirmed that the IRS payment was as a pending status on their bank account. If you are in this group you have a good chance of receiving your stimulus check payment in the next ten days.
Who will receive their stimulus check in the mail?
About 150 million people are expected to be eligible to receive a direct payment of the stimulus check, but the IRS will have to use different methods to get the money to citizens, two of which are based on the physical mailing of the paycheck. encouragement to the recipient.
The IRS will not send cash Instead, it will use physical checks and debit cards to distribute the money to those who cannot reach it with a bank transfer.
Related: The IRS sends stimulus checks back to the wrong bank accounts
Americans who have access to formal banking services but whose information is not on file with the IRS will likely receive their money in the form of a paper check that will be sent to their home address. Since the authorities will have to classify and distribute the checks, they are expected to be shipped from next week.
The other option to receive a physical payment is through the use of a Payment for Economic Impact debit card (FOOT). The prepaid Visa card will be sent to your address and you can use it in stores or online purchases as a debit card.
It will be reserved especially for those who do not have access to a bank account or whose information is not on file with the IRS. These checks will take one more week after the physical checks are sent, that is, during the last days of March.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.