Most of the payments to be released next Wednesday, April 7, are for beneficiaries of government programs such as Social Security.
The Internal Revenue Service (IRS) has already completed most of the direct deposits for the third round of $1,400 stimulus checks under the “American Recovery Plan,” although it is scheduled to release payments to Social Security beneficiaries starting tomorrow as part of a new wave of electronic transfers.
Basically, this is the next massive batch of payments that will reach recipients of government programs such as the one mentioned above next week.
With the deposit to bank and “Direct Express” card accounts of some 30 million recipients of Social Security Administration programs and others starting this Friday, the IRS will have completed much of the distribution of payments from the third round of $1,400 stimulus checks under Gov. Joe Biden.
The first two major payment processing runs were made by direct deposit on Wednesday, March 17 and March 24.
These official payment dates set by the IRS confused some Americans who thought that disbursement would occur about five days before each of the above dates.
However, the payments were marked as “provisional” or “pending” in Americans’ accounts until the aforementioned dates.
Nacha and banks such as JP Morgan Chase and Wells Fargo had to publicly clarify that the payments would not arrive earlier by IRS disposition.
“This is the date by which the IRS is going to provide the funds to the banks or credit unions to make them available to the recipients,” Nacha said in written statements on his website Monday.
“Nacha’s Rules require banks and credit unions to make funds available to cardholders by 9 a.m. local time on the date of agreement; again, in this case March 17,” reads Nasha’s statement which further specifies 8:30 a.m. as the exact time of transfer.
“That is literally the moment when money is transferred from the government to settlement accounts at banks and credit unions at the Federal Reserve,” added the group in charge of U.S. government wire transfers.
The same is expected to happen with the release of checks on April 7. At the same time, the IRS will be sending paper checks and prepaid debit cards (EIP Card) by mail.
The official arrival date of the mailings by the U.S. Postal Service (USPS) to recipients was not specified in Tuesday’s press release.
“As work continues to issue millions of Economic Impact Payments to Americans, the Internal Revenue Service and the Treasury Department announced today that they anticipate payments will begin to be issued this weekend to Social Security and other federal beneficiaries who do not normally file a tax return, with the projection that most of these payments would be sent electronically and received by April 7,” the agency said in the IRS.gov entry.
The office added that it previously processed thousands of third-round payments to Social Security and Railroad Retirement Board (RRB) beneficiaries who filed taxes or entered their information last year using the “Non-filers” online tool.
“Many federal beneficiaries who filed 2019 or 2020 returns or used the Non-Filers tool last year were issued Economic Impact Payments, if eligible, during the last three weeks. The update applies to Social Security, Supplemental Security Income (SSI) and Railroad Retirement Board (RRB) beneficiaries who did not file a 2019 or 2020 tax return or did not use the Non-Filers tool,” added from the IRS.
There is still no update on the status of payments for Americans receiving benefits from Veterans Affairs.