Your Stimulus Check FAQ
The Coronavirus Aid, Relief, and Economic Security Act (CARES) provides needed assistance to businesses, expansions to unemployment insurance, and direct relief checks to many Americans.
COVID-19: Stimulus check relief for March of 2021
Check Your Status: You can check in on the status of your stimulus check and read the Internal Revenue Service's FAQ here: https://www.irs.gov/coronavirus/get-my-payment
Need to deposit your stimulus check? You can deposit your check to your account by using your account number and LA Financial Credit Union’s routing number: 322077562
Congress passed the American Rescue Plan Act of 2021, signed into law on March 11, 2021, which includes a new round of stimulus payments. These payments include $1400 per qualifying individual. Here are some things to keep in mind with the most recent round of direct payments:
- This is part of a $1.9 trillion coronavirus aid package that includes $400 billion for this round of stimulus payments to households.
- Single individuals will need to earn less than $75,000 to qualify for the full amount.
- Married couples will need to earn less than $150,000 to qualify for the full amount.
- Stimulus checks will be phased out entirely for individuals earning more than $80,000 annually and couples earning more than $160,000.
- Under the legislation, most Americans will receive $3,000 a year for each child ages 6 to 17, and $3,600 for each child under 6.
- The child tax credit provision in the bill lasts one year and be sent via direct deposit on a “periodic” basis. It is a major expansion of the existing child tax credit, which provides $2,000 a year for children from birth through age 16.
A few things to keep in mind, as well as resources to help you with questions regarding your stimulus check…
- The Effective Date for first wave of ACH direct deposit Economic Impact Payments (EIPs) will be Wednesday, March 17, 202
- ACH settlement: ACH settlement will occur on Wednesday of each week following payment issuance.
- Any rejected ACH EIP payments will be reissued as paper checks.
- Paper checks: Paper checks will be issued beginning the week of March 15.
- EIP debit cards: The EIP Card is sponsored by Fiscal Service, managed by Money Network Financial, LLC and issued by Treasury’s financial agent, MetaBank®, N.A. In addition to ACH and check payments, this prepaid debit card is being used to deliver EIP payments as rapidly as possible.
- Once activated, the EIP Card can be used anywhere Visa® Debit Cards are accepted: in-store, online or by phone.
- In addition, there are multiple ways to transfer the funds from an EIP Card to an existing bank account at no cost to the recipient. Please refer to the EIP Card FAQs for more information on ways consumers can transfer the funds from their EIP Cards to their bank accounts. If assistance is needed, EIP Card recipients should contact Money Network Customer Service at (800) 240-8100.
- ACH settlement: ACH settlement will occur on Wednesday of each week following payment issuance.
- 152 thousand checks and prepaid cards will be issued with an effective date of March 19, 2021
- First wave will include 90 million ACH payments for a value of $242.8 billion
- 5-7 million checks and 3 million prepaid cards will be issued per week
- To identify your ACH Economic Impact Payment (EIP) in your recent activity it will be listed as – Company name: IRS Treas 310
- Members can verify the status of their checks at https://www.irs.gov/coronavirus/get-my-payment
- Some recipients who received a check may receive a debit card instead; for more information, go to https://www.eipcard.com
- NO EIP is subject to Federal Government reclamation
- NO EIP is subject to garnishment (includes overdue child support and collection debt)
- To verify a Treasury Check – Treasury Check Verification System - TCVS or https://tcvs.fiscal.treasury.gov
IRS Coronavirus Resources
Please refer to the Useful Links for COVID-19 Information on the Fiscal Service website for a variety of EIP-related resources, and check these websites frequently for updated information:
- Board of Governors COVID-19 Resources
- Federal Reserve Bank Services COVID-19 Resources
- IRS Economic Impact Payment Information Center
- IRS Get My Payment FAQs
- Fiscal Service EIP Cards
- IRS.gov/eip
- IRS.gov/Coronavirus
- IRS.gov/GetMyPayment
If you qualify for a stimulus check, you may be wondering what to do with the money—or what the wisest thing to do might be. Here are a few things to consider.
Fill in Financial Gaps
Many Americans have found themselves struggling financially due to the Covid-19 pandemic. Those who have had their hours cut or have been laid off or furloughed have been particularly affected. For anyone caught by surprise or financially underprepared, the stimulus checks can provide a huge lift.
The first thing to do is make housing payments, pay utility bills, buy groceries, and secure other necessities.
Before anything else, the money should be used to cover essentials for you and your dependents. The first thing to do is make housing payments, pay utility bills, buy groceries, and secure other necessities. Other things that may not be absolutely essential at the moment but are likely worth investing in include emergency kit items such as food with a long shelf life and medical supplies.
Supplement Your Emergency Fund
While it’s possible that more relief checks will be approved in the future, nothing is certain. It’s best to assume that this could be the last financial boost that you’ll receive and to plan accordingly. Strongly consider saving part or all of the money to extend or create an emergency fund.
Pay Off Debt
If you have well-funded emergency savings, it’s a good idea to pay down, or better yet, pay off high-interest debt. Minimum payments and high interest rates can add stress to an already difficult financial situation. If you’re able to pay off that debt, you’ll save on payments throughout the coming months, giving you a long-term boost.
For some people, a one time check won’t be enough to truly make a difference with their payments. If you’ve found yourself unable to make debt payments due to the pandemic, consider reaching out to your lender. It’s likely that they’ll be willing to work with you. The last thing you want to do is hide from your payments and rack up additional late fees or penalties on top of your regular payments.
Boost the Economy
If you find yourself in a stable financial situation, meaning you have no consumer debt and well-funded emergency savings, the next best thing you can do with your stimulus check is to spend it— but spend it wisely. Economists have predicted that the effects of Covid-19 will send America into a large recession. These relief checks give everyday Americans the power to help mitigate the damages before the economy falls too far.
As you use your funds, consider supporting the areas that have been hit hardest such as small businesses, local restaurants, and other companies forced into temporary closures. Of course, donating to relief funds and legitimate charities is also a great way to use some of your stimulus check.
The amount that you choose to spend is up to you, though it's wise to reserve at least part of your stimulus check to add to an emergency fund—even a robust one—should your financial situation unexpectedly change.
Some stimulus checks have already been deposited and others will continue to come in the following weeks. Carefully consider where that money will have the biggest impact and how you can most effectively utilize the funds before spending them.
Wondering where your stimulus check is or have questions about it? You can check in on the status of your stimulus check and read the Internal Revenue Service's FAQ here: https://www.irs.gov/coronavirus/get-my-payment
Need to deposit your stimulus check? You can deposit your check to your account by using your account number and LA Financial Credit Union’s routing number: 322077562
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