SPECIAL MESSAGE REGARDING COVID-19 ECONOMIC IMPACT PAYMENTS (EIP)
As a result of the recently signed Coronavirus Response and Relief Supplemental Appropriations Act of 2021, the Internal Revenue Service will begin sending stimulus payments to individuals starting January 4, 2021.
For information regarding your Economic Impact Payment, often referred to as the stimulus payment, the IRS suggests visiting the IRS.gov website for the most current information. IRS telephone support representatives do not have any additional information beyond what is available on the IRS website. New Haven Bank does not have any information regarding your payment status. We encourage you to review your account activity through online or telephone banking to determine if your payment has been received.
How much money will those eligible receive?
Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Most people who have an adjusted gross income for 2019 of up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.
When will payments be distributed?
The IRS and the Treasury Department began issuing a second round of Economic Impact Payments, often referred to as stimulus payments, last week.
The direct deposit payments may take several days to post to individual accounts. Some Americans may have seen the direct deposit payments as pending or as provisional payments in their accounts before the scheduled payment date of January 4, 2021, which is the official date funds are available.
Paper checks also began going out and will continue to be sent through January. Some people will be mailed debit cards in January, and the IRS urges people to carefully check their mail. Mailed payments will require more processing and mailing time. Those who reside abroad will have longer wait times for checks as disruptions to air travel and mail delivery in some countries will slow delivery.
The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. The payments are automatic, and people should not contact their financial institutions or the IRS with payment timing questions.
How will I receive my payment? Will it be sent as a paper check or electronically?
Most individuals will receive their payment electronically. This is faster than mass distribution of paper checks.
If you filed taxes in 2019 and provided on your tax return your bank routing and account number for payments or refunds, and this information has not changed, the IRS has the information it needs to send your payment electronically, with no action required on your part.
If you are a Social Security recipient, the IRS will use the direct deposit information held by the Social Security Administration. If the Direct Deposit information you have provided in the past is for a bank-issued, prepaid debit card, you will receive your funds on that card account. Individuals receiving disability benefits, railroad retirement, or veterans benefits do not need to provide additional information to receive their payments.
The IRS worked with the relevant federal agencies to access the relevant information to distribute payments in the same manner as those individuals receive their regular benefit payments (e.g., direct deposit to their bank account). Also, some individuals received a prepaid debit card from the government instead of a check; the IRS will provide more information about how it will distribute debit cards.
If an individual is a non-filer or failed to receive some, or all, of their first Economic Impact Payment, please check out the IRS website to learn more about claiming the Recovery Rebate Credit on the 2020 tax return.
What if I changed bank account or mailing address since the first Economic Impact Payments were dispersed?
The IRS cannot change payment information, including bank account or mailing information. If an eligible taxpayer does not get a payment or it is less than expected, it may be claimed on the 2020 tax return as the Recovery Rebate Credit. Remember, Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.
How can I check to see if my payment has been sent? Is there a place where I can check on it?
The IRS has established a site called “Get My Payment” at https://www.irs.gov/coronavirus/get-my-payment. This site provides information on payment status and payment type.
What can I do to prevent fraudsters from accessing my funds?
A large amount of funds will be disbursed in the coming weeks to qualifying individuals. Accordingly, there is a risk for fraud of various types. The IRS has announced various ways individuals can be on guard against fraudulent activities. See the notice.
It is important to remember that banks or the federal government will never contact you by telephone, text or email asking for your account information. Do not provide any banking information to anyone claiming to be “registering you for your relief payment.” This is a red flag.
For security reasons, the IRS plans to mail letters about Economic Impact Payments to taxpayers’ last known address after the EIP is sent. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If you are unsure you are receiving a legitimate letter, the IRS urges you to visit IRS.gov to protect yourself against fraudsters.
What should I do if I receive an unsolicited email or text appearing to be from the IRS?
Those who receive unsolicited emails, text messages or social media contacts attempting to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward them to phishing at irs dot gov.
Taxpayers are encouraged not to engage potential fraudsters online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.
Where can I get more information?
For more information about Economic Impact Payments and the 2020 Recovery Rebate Credit, visit IRS.gov/eip. You can check the status of your payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.