According to a memo recently received by the
Associated Press, the federal government is set to begin sending out payments
under the stimulus law in mid-April, but many Americans won't see this money in
their accounts until much later. The Ways and Means Committee has said that the
IRS will start making these payments to approximately 60 million Americans
through direct deposit around the week of April 13, but individuals for whom
the IRS cannot determine their direct deposit information from their 2018 or
2019 tax returns may not see their checks until at least mid-August.
The stimulus plan, which was signed into law
by President Trump on March 27 in order to help ease the financial burden
placed on Americans during the coronavirus pandemic, seeks to put a one-time
payment directly into the hands of Americans. Under the $2.2 trillion rescue
package, anyone making below $75,000 with a social security number will receive
$1,200, with an additional $500 per child. Americans making more than this
amount will see their payment decrease.
Despite the fact that Treasury Secretary Steve
Mnuchin believes that "this money does people no good if it shows up in four
months," a prolonged timeline may be exactly what's in store for millions of
Americans. The IRS will begin sending out paper checks to individuals around
the week of May 4. These will be issued at a rate of 5 million checks per week,
extending the timeline for all eligible recipients to receive their checks to
20 weeks, or until August 17.
In the memo, the committee states that they
remain "focused on ensuring all eligible Americans receive their payment as
quickly as possible," and that they continue to have "extensive conversations
with the IRS and the Department of Treasury." Americans should be aware that
this timeline is subject to change and that further supplemental aid packages
may be discussed in the upcoming months. To address questions of eligibility
and access, the IRS intends to create a portal at the end of the month, where
taxpayers can check the status of their stimulus payment and update their
direct deposit information.
