Topline
The Internal Revenue Service announced Monday that it will begin sending out the second batch of $1,400 stimulus payments this week, this time via paper checks and prepaid debit cards sent through the mail as well as by direct deposit.
Key Facts
The agency said the “vast majority” of eligible people will receive their stimulus payments electronically via direct deposit.
This week’s electronic payments will have an official pay date of March 24, though some individuals may see money in their bank account earlier as “provisional” or “pending” deposits.
The agency began sending out the first batch of direct deposits last week, with many payments clearing major banks on Wednesday, March 17.
Eligible individuals can check the status of their stimulus payment—and how the payment will be sent—using the IRS’ Get My Payment tracking tool.
The IRS urged taxpayers to keep a close eye on the mail: While the envelopes from the Treasury Department will be clearly marked, the plain white envelopes containing the first round of debit cards last spring looked to many recipients like junk mail.
Crucial Quote
“The IRS continues to send the third round of stimulus payments in record time,” IRS Commissioner Chuck Rettig said in a statement. “Since this new set of payments will include more mailed payments, we urge people to carefully watch their mail for a check or debit card in the coming weeks.”
Big Number
90 million. That’s how many stimulus payments the IRS sent out via direct deposit in the first round of disbursements last week, worth some $242 billion.
Key Background
President Biden’s $1.9 trillion American Rescue Plan authorized a third round of direct payments, this time in the amount of $1,400, in addition to the $600 and $1,200 stimulus payments sent last year. Individuals earning less than $75,000 per year will receive the full $1,400 payment, as will heads of household earning less than $112,500 per year and couples filing jointly earning less than $150,000. These new payments will phase out faster than the previous two rounds, however, meaning that some 17 million people who were eligible for checks last time will not receive them this time.
What To Watch For
The IRS said that it will send out payments on a weekly basis in the the future.
Further Reading
In Switcheroo, IRS To Deliver Full Stimulus Payments To Those With Federal Tax Debts (Forbes)
Stimulus Checks Are Coming To Big Banks On Wednesday At 9:00 AM (Forbes)
