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The five phases of sending a second round of stimulus checks if approved

The five phases of sending a second round of stimulus checks if approved

During the first round, some 120 million payments were sent via direct deposit. Amidst uncertainty about whether a second stimulus check will be passed, it is possible to anticipate at least five phases of sending payments if a new economic rescue law is finally passed in the U.S. Congress.

The estimate is based on an in-process evaluation by agencies such as the Internal Revenue Service (IRS) and the Department of Treasury to distribute the first check under the CARES Act.

In the first round, the first payments were issued by direct deposit to recipients for whom the IRS had that information.

The agencies in charge were supposed to have completed the distribution by this time, however, they are still processing late payments due to lack of information from potential recipients. This process could extend to the end of the year.

The Delivery Phases

Direct Deposit

So, during the first phase of distribution in case of a new round of payments, the first to receive the money would be the people who provided their bank information to the IRS. As of last June, the IRS had sent 120 million of the 159 million payments by direct deposit, or most of it.

Social Security Beneficiaries

Based on the above, Social Security beneficiaries would be another group that would first receive economic impact payments. As in the previous case, the key is that these individuals have provided their bank information to the tax collection agency.

“EIP Cards”

After direct deposits, beneficiaries who received the money in the first round by debit card or EIP Card would receive the second payment in the same manner.

The IRS and the Treasury began distributing the money in plastic to some 4 million Americans, to whom the card was supposed to be mailed.

The process has been marked by misinformation, to the point that thousands of residents threw away the mail because they did not know that it was a “financial impact payment. The IRS determined not to charge for the first replacement to try to rectify the situation.

Only taxpayers whose tax returns were processed at IRS centers in Andover, Massachusetts, or Austin, Texas, would receive payment in the form of a debit card or “EIP Card.

Paper Checks

If none of the above apply to you, you will most likely receive the money in a paper check.

During the first round of mailings, the IRS processed about 35 million payments in this way.

Other more complicated cases

Most U.S. citizens, permanent residents, or resident aliens will receive the economic impact payment of $1,200 or $2,400 minimum if they filed a married joint return, are not dependent on another taxpayer, and have an eligible Social Security number.

But the situation is complicated and would require additional paperwork from potential beneficiaries if they are not normally required to file a tax return.

To deal with the above problem, the IRS created the Non-Filers tool available in English and Spanish. The tool is designed to be used by individuals with incomes generally under $24,400 for married couples and $12,200 for singles for whom the IRS does not have their information.

Through the service, this group submits their data to the agency so that the step can be processed. This applies to homeless couples and individuals.

Individuals may qualify, even if they have no income or are not working.

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