COVID-19: Government Stimulus Payment
On Thursday, March 11, 2021, President Biden signed the $1.9 trillion American Rescue Plan Act, authorizing “Recovery Rebates” to most Americans based on their most recent 2019 or 2020 tax returns. Rebates began to be paid to qualified individuals in mid-March. The next wave of payments is scheduled for Wednesday, April 7, 2021.
You may understandably have questions about this program, but you can avoid longer than normal hold times with our ExpressBank by referring to key points below, or by regularly visiting irs.gov/coronavirus for updated information. For questions about a missing Recovery Rebate, the amount of your payment, or the timing of your deposit, please contact the IRS directly.
What you need to know
- Who is eligible to receive a Recovery Rebate?
- Individuals who are U.S. Citizens or resident aliens and who are not a dependent of another taxpayer.
- Who qualifies for a Recovery Rebate?
- Single Tax Filers
- Eligible individuals whose adjusted gross income 1 was $75,000 2 or less may qualify for a $1,400 Rebate. Eligible individuals with an adjusted gross income between $75,000 and $80,000 may qualify for a reduced Rebate.
- Joint Filers
- Eligible married couples whose adjusted gross income was $150,000 or less may qualify for a $2,800 Rebate. Eligible married couples with an adjusted gross income between $150,000 and $160,000 may qualify for a reduced Rebate.
- Heads of Households
- Eligible individuals who file their taxes as head of household, and whose adjusted gross income was $112,500 or less, may qualify for a $1,400 Rebate. Eligible individuals who file their taxes as head of household, and whose adjusted gross income was between $112,500 and $120,000 may qualify for a reduced Rebate.
- Qualifying taxpayers with dependents will also receive $1,400 per dependent claimed.
- Is there an income eligibility cut off?
- Yes. Rebates will not be provided to single people whose adjusted gross income exceeded $80,000, heads of households whose adjusted gross income exceeded $120,000, and married couples whose adjusted gross income exceeded $160,000.
- When and how will Rebates be sent?
- According to the American Rescue Plan Act, Rebates will be sent “as rapidly as possible”. Qualifying individuals began receiving Rebates within days after the President’s signing of the bill on March 11. As with previous rounds of stimulus assistance, the IRS will calculate and automatically send the Rebate to those who are eligible. They will use information from your most recent tax filings to calculate rebate amounts and to determine whether your payment will be sent electronically to your bank account or mailed to you as a check.
- The next wave of Economic Impact Payments (EIP3s) is scheduled for Wednesday, April 7, 2021. The IRS has announced that this wave of EIP3s will include Social Security and other beneficiaries who are not tax filers.
- Meanwhile please see below for helpful steps you can take now to prepare for your possible payment.
- What if the direct deposit was sent to a closed account?
- If a Rebate is sent to a closed account, we’ll perform a search to determine if the client(s) have another account in their name(s). If we locate another account in the name(s) of the Rebate, we will attempt to reroute the deposit. If there is no matching relationship with the bank, we’ll return the deposit to the originator.
For more on this, please visit this IRS webpage.
Steps you can take now
- Be the first to know – set up an alert!
- If you expect your payment to arrive electronically, log in to digital banking and set up a direct deposit alert for the account into which your payment will be deposited. This will ensure you’re aware of when the payment arrives in your account. Not yet enrolled in digital banking? It takes just minutes.
- Fastest deposit – enroll in Mobile Deposit
- If you’re expecting to receive your stimulus payment via paper check, use mobile deposit or one of our ATMs for the fastest check deposit experience and skip long lines at our banking center drive-thru.
All deposits are subject to review and funds from your deposit may not be available for immediate withdrawal. This information is intended for informational use only and is subject to change. For the latest details visit the IRS.
1 Adjusted gross income is your annual gross income minus certain adjustments as calculated on your IRS 1040 forms.
2 Recovery Rebates are based on 2019 or 2020 tax returns.
All deposits are subject to review and funds from your deposit may not be available for immediate withdrawal.
This information is intended for informational use only and is subject to change. For the latest details visit the IRS website.