Finally! Recipients of the second stimulus check sent by the Internal Revenue Service (IRS) a week ago who had direct deposits of money listed as “pending” and “provisional” can now use the funds.
On Monday, the IRS released the money for recipients to use. That date is the official payment date, the agency said.
“Some Americans are going to see direct deposit payments as outstanding or provisional checks on their accounts before the official payment date of Jan. 4, 2021,” the tax collector’s office warned.
January 4 is the date when the federal Treasury Department officially transfers the funds to the institutions that credit the funds to the independent accounts.
After that date, however, the IRS will continue to process payments electronically and by other means.
In a statement that day on its website, the office states: “Direct deposit payments may take several days to post to individual accounts. Some Americans may have seen direct deposit payments as pending or interim payments on their accounts before the scheduled payment date of January 4, 2021, which is the official date that funds are available.
Some users on social networks such as Facebook have been complaining that even though the second stimulus check appeared to be deposited into their accounts, they were unable to withdraw the money or perform transactions with the funds.
But, as of this week, recipients are not supposed to experience any major inconveniences.
The IRS in coordination with the Treasury began the process of distributing the second round of payments last Tuesday with the first electronic transfers to bank accounts.
At least 100 million people are supposed to receive the payment to their bank accounts. The IRS also processes millions of paper checks and a minimum amount of payments in the form of a debit card.
Payments of $600 per individual and the same amount for each dependent
The Supplemental Appropriations in Response and Relief Act of 2021 provides for payments of $600 per individual and the same amount for each dependent under age 17.
Those who earn more than $75,000 a year, for singles, or $150,000, for married couples, will receive less than $600, in proportion to their income. Every $100 earned above those thresholds is $5 less in the check.
The federal government has until January 15 to send out the second “Economic Impact Payments.
Eligible individuals who do not receive the incentive by that date must apply for the disbursement as a credit on their next tax return.