Saturday, October 15, 2022

What If My Bank Account Closed Before Stimulus Check

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Did Your Stimulus Check Arrive Check Your Bank Account

Stimulus Check Deposited To CLOSED Account?

Has your stimulus check arrived?

Heres what you need to know.

Stimulus Checks

If you check your bank account and find your stimulus check deposited, you may be among the first taxpayers to receive a stimulus check. The first stimulus checks were deposited into bank accounts starting last Thursday. Taxpayers shared the good news on social media, with some posting photos of their online bank accounts.

Single taxpayers who earned less than $75,000 and filed a 2018 or 2019 federal income tax return can expect a $1,200 stimulus check. Married couples filing jointly who earned less than $150,000 can expect $2,400 and each dependent child age 16 or younger can receive $500.

What if your stimulus check isnt in your bank account?

If your check is in the first batch of stimulus checks, you may receive your stimulus check in your bank account by April 14, 2020. Treasury Secretary Steven Mnuchin has said most Americans will receive their stimulus check by April 17. If you dont receive your stimulus check by then, dont panic. Most likely, one of two things has happened:

  • You dont qualify for a stimulus check based on your adjusted gross income earned or
  • You didnt provide your banking information to the IRS on your 2018 or 2019 federal tax return.

Why Should I Double Check My Payment Total With The Stimulus Check Calculator

Delivering a third stimulus check in the middle of tax season has complicated matters. If you filed your taxes early and the IRS processed your 2020 return, it may use that information to calculate your stimulus total. If not, your third check will be based on 2019 totals, or other information the agency has .

If your estimated total from the stimulus calculator differs greatly from what you received through direct deposit, it may signal that the IRS owes you money for dependents that were unaccounted for, or a different life circumstance, like if your adjusted gross income from 2020 is lower than from 2019. Again, we recommend holding on to that IRS confirmation letter to file a future claim.

You may want to set up direct deposit with the IRS if you don’t have it already in place.

What To Do If Someone Writes A Check Against A Closed Bank Account

Paying for goods and services with a check written on a closed account is a serious offense that puts the perpetrator in legal jeopardy. If action isnt taken right away to rectify the situation, consequences can range from a denial of further banking privileges to civil court, and even criminal prosecution. The actions you’ll need to take depend on whether you are the one who wrote the bad check, or the one who received it.

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Why Won’t The Irs Let Me Sign Up To Receive The Third Payment As A Direct Deposit

Good question, and we don’t have an answer. The IRS opened up direct deposit registration for the first stimulus check in April 2020 and shut down the feature on May 15 that year. The tool wasn’t turned back on for the second checks, when the agency had just over two weeks to complete making payments.

This time, the IRS said it’ll “use data already in its systems to send the third stimulus payments. Taxpayers with direct deposit information on file will receive the payment that way. Those without current direct deposit information on file will receive the payment as a check or debit card in the mail.”

In general, you’ll get your money faster through direct deposit than with a paper check.

If You Dont Recognize The Account

Check your bank account: stimulus checks started arriving ...

The most common scenario for this problem: Many people who used a tax prep service like H& R Block or TurboTax to get an advance on their refund found their stimulus check was deposited in a bank account they didnt recognize.

Thats because many tax companies give customers early refunds on a prepaid debit card, then set up a temporary bank account where the IRS deposits the refund. While some people in this situation report getting their stimulus checks without an issue, others have discovered that their check was sent to the temporary account.

In this case, the process will probably be the same as it would be if your check were sent to your old account: The refund will be returned to the IRS, and youll get in line for a paper check.

Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column.

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You’re Seeing A ‘payment Status #2’ Error

Some taxpayers have reported seeing the message “Payment Status #2 Not Available” when checking on the status of their stimulus using the IRS Get My Payment tool. Those who see this message will not receive a second stimulus check automatically, according to reporting by CNBC Make It.

Video by Helen Zhao

People in that situation will have to wait until they file their 2020 taxes to get their payment.

“The IRS advises people that if they don’t receive their Economic Impact Payment, they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible,” the agency told Make It.

What Happens If My Account Was Closed At The Time Of The Deposit

If your account has been closed, the financial institution will return the direct deposit and a refund check will be mailed to you within 4 weeks of receipt of the returned direct deposit attempt. The Michigan Department of Treasury cannot add or make any changes to the direct deposit information after the return has been received.

If your financial institution cannot locate the direct deposit after 4 weeks, you may request a tracer through the Michigan Department of Treasury. A tracer can take up to 24 weeks. We will notify you of the results by mail.

You may request a direct deposit tracer using self-service. Include your full name, complete current mailing address and the tax year with your request.Click on the above link and follow these steps:

  • Select the Inquiries option
  • Then select Inquire about My Refund
  • You will be asked to enter the following information for security reasons:
    • Primary filers Social Security number
    • Primary filers last name
    • Tax year

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    When A Stimulus Check Goes To A Closed Bank Account

    If, on the other hand, the account was closed, you have little reason to worry though your payment will be delayed. According to the Internal Revenue Service, if a stimulus payment goes to an account that is closed, the bank will reject the money. Then, the Internal Revenue Service will look at the mailing address it has on file so the check can be sent by mail instead.

    The agency is also required to send you a letter in the mail within 15 days, providing information on how the Payment was made and how to report any failure to receive the Payment.

    But it would be worth your time to contact your bank and ensure that the check was in fact rejected. Then, go back into the Get My Payment portal to make sure your mailing address is up to date.

    You’re Married And Filed A Joint Tax Return

    Stimulus checks sent to the wrong account

    If you’re married and filed a joint tax return, half of your third stimulus payment might be delayed. That’s because the IRS is sending two separate payments to some joint filers. The first half may come as a direct deposit, which you may have already received. But the other half is then mailed to the address the IRS has on file, which is generally the address on your most recent tax return or as updated through the U.S. Postal Service. The second payment could come the same week as the first oneor it might not arrive for a few weeks.

    If you’re a joint filer and only get half of what you should have received, both you and your spouse should check the IRS’s “Get My Payment” tool separately using your own Social Security number to see the status of your payments.

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    What If I Receive A Paper Stimulus Check

    If you receive an Economic Impact Payment in the form of a paper check through the mail, a fast and safe way to deposit your money is with mobile check deposit.2 We encourage you to download the U.S. Bank Mobile App and use this free service.

    Weve increased mobile deposit limits for many customers and removed the restriction on government checks to make it easier to deposit other checks, such as paychecks and Social Security payments, from home.

    I See My Stimulus Payment Marked As Pending Can I Use It

    You will be able to access the stimulus payment funds as soon as they are showing in your Available Balance in online banking. Funds are anticipated to appear in your “Available Balance” beginning Wednesday, March 17, as directed by the government. Please note, the anticipated date is not certain, and you should rely upon what your Available Balance shows on that date.

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    The Stimulus Checks Went Out In ‘batches’

    The IRS was in a colossal bit of multitasking last spring up to its eyeballs in both tax returns and the millions of stimulus checks.

    Rather than completely overwhelm itself and risk creating an ugly backlog of payments, the tax agency opted to deliver the stimulus funds in batches.

    The most recent batch of cash, announced by IRS in July, totaled more than $4 billion and included about 2.2 million payments. Officials never formally declared an end to the distribution.

    Evaluate Your Options For A New Account

    Free IRS tool helps you track your stimulus check

    If your account hasn’t been reported to ChexSystems, you may not have much trouble getting a new one with another bank.

    On the other hand, if it has, your options are likely to be more limited.

    or online banks are one alternative to consider, since they’re member-owned and tend to be more understanding when it comes to past banking mistakes.

    Not only that, but they generally charge fewer fees and pay higher rates on interest-bearing accounts than what you’d get at a traditional bank, which is an additional plus.

    Here are the top online banks that have highest savings accounts rates and free interest checking accounts:

    If you’re not having any luck with an online bank credit union or smaller community bank, a second chance checking account may be the answer.

    Second chance accounts are offered by a number of banks and they’re designed for people who have made mistakes in the past and need a fresh start.

    These accounts tend to carry higher fees but in most cases, you can convert them to a regular checking account after a certain period of time.

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    What If I Havent Received Previous Stimulus Payments For Which I Was Eligible

    The Internal Revenue Service and the Treasury Department have finished delivering the first and second Economic Impact Payments. You can verify your final payment status by visiting Get My Payment at

    If you were eligible for the first and/or second stimulus and either didnt receive an Economic Impact Payment or received one in the wrong amount, you can claim a Recovery Rebate Credit to correct the error. You must file a 2020 federal tax return to claim this credit, even if you are otherwise not required to file.

    Closed Bank Account Stimulus Check Deposits

    The IRS has confirmed that if it attempts to use direct deposit but an account is closed, the bank will reject the deposit, and the IRS will mail you a paper check with the address it has on file for you. However, paper checks may take weeks longer to arrive than direct deposits. Regardless of how the IRS sends your stimulus payment, it will also send a letter to the mailing address it has on file for you to let you know how the payment was made and how to report any failure to receive the payment, according to its website.

    While there was some flexibility to update bank accounts for the first stimulus payment, the second stimulus payment has to be paid out by mid-January 2021 so existing bank account information is being used. If you dont get your stimulus check by direct deposit, check or debit card by February the IRS is recommending you claim the stimulus payment via your 2020 tax return.

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    When Your Stimulus Lands In A Closed Account

    The fact that Americans are receiving stimulus cash via direct deposit is a good thing — it means they get their money sooner. But the information being used to send out those payments is based on bank account details the IRS has on file for refund purposes from either 2018 or 2019 returns. Many people haven’t yet filed the latter, since the IRS pushed back the deadline to submit 2019 returns to July 15 of this year. As such, if the IRS uses the bank account details from your 2018 return to issue your stimulus, you may run into a scenario where you’ve since closed that account.

    Rest assured, however, that if your stimulus goes to an account that’s no longer open, your bank will reject the transfer of funds. Once the IRS is notified that that payment didn’t go through, it will issue you that money via a physical check instead. As such, you’ll need to make sure the mailing address the IRS has on file for you is correct. The IRS will use the mailing address from your last tax return, so if you’ve moved since, make sure your mail is forwarded, or that you’ve updated your mailing address with the U.S. Postal Service.

    Bank Account Closed 5 Things You Must Do Next

    Stimulus Check Deposited To CLOSED Account

    Maintaining a separate savings account at an online bank can act as an emergency buffer if your checking account is closed.

    Having your bank unexpectedly close your account could result in late payments for bills that are linked to your account and could potentially make it more difficult to get a new account somewhere else.

    MyBankTracker looks at why banks close customer accounts and what to do if it happens to you.

    Establishing a good relationship with your bank is important but if you’re not careful, you could cause it to sour.

    Repeatedly bouncing checks, letting your account lie dormant for an extended period of time or engaging in activities that are deemed suspicious are all reasons that your bank could decide to break up with you.

    An account closure is inconvenient to say the least and it has the potential to impact your ability to get a new account with a different bank.

    If you’ve gotten a Dear John letter from your bank, taking steps to minimize the damage can make it easier to move your money to another financial institution.

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    Stop Your Direct Deposits Or Automatic Bill Payments

    If your paycheck is automatically deposited into your now-closed account, you’ll need to let your employer know as soon as possible.

    Waiting to notify payroll about the chance can significantly delay how long it takes to get paid since the bank will have to send the money back, which can take anywhere from five to 10 business days.

    Once your employer is notified that the deposit was rejected, they’ll have to issue a paper check, which can add another week or two on to your wait time.

    You also want to make sure your automatic bill payments are suspended and you make other arrangements pay to until you can establish a new bank account.

    If you don’t, then you’re looking at getting hit with late fees or returned payment fees, which only adds to your financial headaches.

    I Havent Filed My 2020 Taxes Yet What Should I Do

    That depends on how your income has changed.

    • If your income fell in 2020, you may qualify for a larger Economic Impact Payment by filing as soon as possible. If your 2020 federal income tax return is on file by the time the IRS processes your stimulus check, the amount of your payment will be calculated based on that reduced income.
    • However, if your income increased in 2020, it may be in your best interest to wait to file your taxes until after your stimulus payment arrives.

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    How Long Does It Take For The Irs To Reissue A Stimulus Check

    six to eight weeksIf your refund check was lost, stolen, destroyed or not received and has not been cashed, we can normally provide a replacement within six to eight weeks. If your refund check has been cashed, you will receive a photocopy of the check and a Form 1133, from the Bureau of the Fiscal Service to initiate a claim.

    Second Stimulus Payments Final Payment Updates

    Check yâallâs banks! That stimulus check just hit! : memes

    The IRS has confirmed it has issued all first and second Economic Impact Payments it is legally permitted to issue, based on information on file for eligible payees and their dependents. The GMP tool was last updated on Jan. 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments. If you havent yet received your payment and GMP is not showing payment details then the IRS is recommending you claim this via a recovery rebate credit in your 2020 tax return that you will file this year. Major tax software providers like Turbo Tax and Tax Act have updated their software to allow tax payers to claim their missing first or second stimulus payment as a recovery rebate with their 2020 tax filing.

    I am getting this question a lot when it comes to the recently approved $600/$1200 stimulus checks. But there are two different questions and outcomes here. One is not so great news, the other is better but means a delay in receiving your stimulus payment.

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