IRS economic stimulus checks will be transferred to millions of bank accounts next week.
The first wave of payouts is expected to help millions of taxpayers as the U.S. battles with the coronavirus outbreak.
This IRS economic stimulus checks could help them buy groceries and pay rent and other bills next week, or possibly as early as Thursday or Friday.
The first group of recipients, which could be around 50 million to 60 million Americans, would cover individuals who have already sent their bank account details to the Internal Revenue Service (IRS).
In addition, the initial recipients include Social Security beneficiaries who filed federal tax returns that included direct deposit details, based on an alert released today by U.S. Rep. Debbie Dingell, D-Mich.
According to Dingell's announcement, the first direct deposits shout begin to roll out in mid-April, likely the week beginning April 13.
However, other sources say many bank accounts could get the funds as soon as Thursday or Friday.
"For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure, they’re receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists," according to the IRS.
Meanwhile, the next wave of funds could be received as early as the week of April 20 for those who receive Social Security benefits through direct deposit but may not make enough money to be required to file a federal income tax return in 2018 or 2019.
"The estimates are that nearly 99% of Social Security beneficiaries who do not file a return receive their benefits through direct deposit," according to Dingell's alert.
Moreover, the final wave of money would require the mailing of actual stimulus checks at a later date. The paper checks may be delayed over several weeks.
The first paper checks are expected to go out to families who have the lowest incomes, possibly those who make less than $10,000 a year, but do not have direct deposit information on file with the IRS.
The U.S. Treasury Department is expected to launch a web-based portal system sometime late next week. Through this platform, people would be able to provide their own direct deposit information in order to hasten the delivery of funds and avoid the checks altogether.
Advance payment
"First and foremost, the payments will not be included in 2020 income. Any payment you receive is an advance payment of a credit that will appear on your 2020 income tax return," said Ken Milani, professor of accountancy at the Mendoza College of Business at the University of Notre Dame.
Meanwhile, the U.S. Department of Treasury asked Congress on Tuesday for $250 billion more for small business loan. Small business loans are a significant part of the economic sitmulus package passed last month to aid Americans who are suffering from the coronavirus outbreak.
“We just asked Congress to pass legislation to fund an additional $250 billion dollars for Paycheck Protection Program,” US President Donald Trump said at the White House during a video teleconference with the country’s top chief executive officers and members of his administration, including Treasury Secretary Steven Mnuchin.
“The way it’s going, we’re going to need that, because it’s really going. People are loving it. They’re really loving it,” Trump said.
