Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.
Finally, lawmakers are getting closer to a bipartisan $ 900 billion coronavirus relief deal it could give Americans hardest-hit the cash they need so badly – albeit less than many had hoped for.
Congress has until 12:01 a.m. on Saturday, December 19 to reach agreement on the long-awaited emergency relief plan that would have included direct payments of $ 600 to $ 700 per person; and improved unemployment benefits.
It’s not a done deal, but lawmakers have been quoted speaking optimistically this week about the possibility of a resolution before the weekend.
If the deal passes, politicians have said the stimulus check distribution could be implemented immediately, especially now that the IRS distribution tool is already in place from the last round of checks sent. in spring. Back in August, Treasury Secretary Steven Mnuchin said the IRS could start processing checks “immediately” and issue the first batch within a week (at $ 50 million per batch).
But given what we know from the last round, exactly when the next raise check will appear in your current account depends on a few factors.
If the IRS has already registered your direct deposit information, you will likely be among the first groups to receive the money electronically. If you signed up for direct deposit with the IRS when you filed your 2018 and / or 2019 taxes – and your account information is the same – you’ll likely be in the foreground. With the CARES law, beneficiaries with up-to-date information received their payments within a few weeks.
Get the most out of your dunning check: If you don’t need your stimulus check to cover basic expenses, use it to set up an emergency fund in a high yield savings account, so you can earn a higher APY. the Marcus High Yield Online Savings by Goldman Sachs is CNBC Select’s best overall choice. No fees and easy mobile access, it’s the easiest savings account to use to grow your money with no strings attached. Read about all of our best choices.
Social Security (SSI) and / or Disability (SSDI) recipients may also be in one of the early waves, as their banking and contact information is likely up to date. With the first stimulus payment, many people on Social Security (who also had direct deposit information on file with the IRS) received payments within the first week, reports CNET. But given the upcoming holidays, the money is more likely to arrive in early 2021.
If your bank account is not registered with the IRS (which means you received your last tax return by mail and / or your information has since changed), you will likely receive a paper check or card. Visa Prepaid Debit Card, also known as an Economic Impact Payment Card (EIP).
Paper checks and EIP cards can be mailed at a rate of five to seven million per week, reports CNET. In the final round, the IRS prioritized checks based on income, starting with Americans earning less than $ 20,000 a year and gradually moving to those with higher incomes.
If you still haven’t gotten your first dunning check, you can request the Recovery rebate credit when you submit your 2020 taxes next spring. Essentially, the credit will be used to compensate you for the unpaid stimulus money owed to you. Learn more about rebate credit and check the status of your check with the IRS here.
Time is running out for anyone to receive a check for $ 600 before New Year’s Eve. The first payments would go to those whose direct deposit information is already on file with the IRS, but the longer the Congress, the less likely your check is to arrive in 2020.
The safest bet is to budget as if the payout is coming in January or, more conservatively, later in 2021.
Not comfortable waiting so long for a stimulus check? : Here’s what a financial planner says to do while waiting.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.