WASHINGTON—The Internal Revenue Service has begun sending payments of approximately $1,200 to most Americans as part of the economic stimulus included in the CARES Act.
Officially known as Economic Impact Payments (EIPs), approximately 75 million Americans are expected to receive the funds beginning April 15 via direct deposit.
In response, The CUNA/American Association of Credit Union Leagues’ COVID-19 Response Center has been updated with an “Economic Impact Payments” tab containing the latest information, including the IRS toolkit, CUNA stated.
EIPs are based on 2018 and 2019 tax filings. Individuals who did not file for electronic returns for 2018 or 2019 filings will not receive direct deposit payments via ACH. Instead, those qualified individuals will receive payment by check in the mail in the coming weeks.
Resources Offered
CUNA said its resources on EIPs includes a one-page information sheet on what credit unions can communicate to their members, including EIP basics, how to register for payments and other information members can use.
It also links to a National Credit Union Foundation blog post, on which CUToday.info has details here, on how members can best use the EIPs safely and in a way that benefits their financial health during the pandemic.
Finally, it contains links to the IRS toolkit, which includes digital posters with information consumers need to know, how to file if someone hasn’t for 2018 and/or 2019, graphics in multiple languages, for Social Security recipients and information on scams.
New Tool Launched
The Treasury Department and Internal Revenue Service have also launched a new web portal, the non-filer tool, to help those who don't normally file a tax return register for the stimulus payments under the CARES Act.
The agencies also announced that automatic payments are set to begin this week.
Additionally, the agencies indicated that another tool will be released to enable individuals to track the status of their payment. “Get My Payment,” expected to be available for use by April 17, features updates on the status of payments, including the date a payment is scheduled to be deposited or mailed, Treasury and the IRS said in a statement.
Eligible individuals will be allowed to provide their bank account information so they can receive their payment more quickly; however, this feature will be unavailable if the payment has already been scheduled for delivery.
Last week, Nacha announced the ACH Network is ready – and has the capacity – to handle the influx of deposits resulting from the CARES Act's stimulus payments to individuals.
NAFCU noted it has also addressed FAQs related to the stimulus payments in a recent Compliance Blog post.