Have Some Already Received Their Stimulus?

Have Some Already Received Their Stimulus?

Here is your stimulus update for April 11, 2020.

We have a full plate of information today, so I am going to get right into it.

If you’d rather watch than read, check out the YouTube version here!

1. Have some people already gotten their stimulus?

Now, I’m sure you’ve heard by now that some people have in fact received their stimulus payment already.

How is this possible?

Mnuchin reportedly said next week, Pence said next week, Trump was reportedly on a call where they said next week, and most importantly the IRS said next week, so why are some people seeing their deposits now?

Some Are Just Pending Deposits

So the deal is for these deposits to hit bank accounts next week, many of them would have had to be initiated to the banks in some cases as early as yesterday, so a lot of people are saying, “Oh, I got mine!”, but what they’re really seeing is pending deposits.

They don’t actually have access to the money right now — they’ll have it next week.

Some Neobanks Are Advancing Stimulus Funds to Customers

However, some people who use certain neobanks — or online-only or even app-based banks — have actually received possession of their stimulus checks to use the money.  How is this possible?

It’s because these neobanks are advancing these stimulus checks to their customers.

Take for example Chime.  Yesterday a neobank called Chime stated in a blog post that they received notifications from the government of over $375 million of Chime member payments scheduled to be released on April 15 — that is, next week, consistent with the timeline that IRS and others have laid out.

However, Chime said — and I quote — “Rather than wait until the 15th, Chime has worked closely with our bank partners to make these funds available immediately. As of tonight, we’ve already delivered this stimulus money to over 230,000 Chime members. We expect to be in a position to release many more payments to Chime members in the coming days…We’re happy to be able to help our members get these important government payments up to 5 days early.”

So props to Chime and these other neobanks who are really stepping up for their customers right now to get their stimulus money up to five days early.

But this is obviously the exception, not the rule.

2. Just to Reiterate on the IRS Portal and the Get My Payment Tool

The IRS Portal for Non-Filers

The IRS Portal that went out yesterday is for non-filers, that is, people who are not required to file a 2019 tax return.

Do not use the IRS portal that rolled out yesterday if you have already filed your tax return or you have a tax return filing requirement for 2019.

What that IRS portal is doing — just like what the TurboTax stimulus registration is doing — is filing an actual simple tax return for you for tax year 2019, and if you’ve already filed — or you need to file due to your income — that will mess you up.

Also, if you already did the TurboTax “stimulus edition” (as I’m calling it), and it was accepted, you’re good — don’t do the IRS one as well.  They’re both doing the same thing — filing a simple 2019 tax return for you.

The Get My Payment Tool

Now, as I mentioned in my update yesterday, the IRS is rolling out a tool next week — they said it should be out by April 17 — called Get My Payment where you can track your stimulus payment and also update your direct deposit information with the IRS.

Of course I will do a walkthrough of this as soon as it goes out.

Treasury issued some additional minor guidance about this tool yesterday, namely, what information you will need to use it.

Here’s the information you’ll need to use the tool at all:

• Your social security number
• Your date of birth
• Your mailing address

Here’s the information you’ll need to update your direct deposit information:

• Your banking information — account number, account type (checking or savings), and routing number
• Your adjusted gross income from your 2018 or 2019 tax return.  For 2018, your adjusted gross income can be found on Line 7 of your 2018 Form 1040.  For 2019, your adjusted gross income can be found on Line 8b of your 2019 Form 1040.
• The refund or amount owed from your latest filed tax return.  For 2018, your refund amount can be found on Line 20a of your 2018 Form 1040.  For 2019, your refund amount can be found on Line 20b of your 2019 Form 1040.  For 2018, your amount owed can be found on Line 22 of your 2018 Form 1040.  For 2019, your amount owed can be found on Line 23 of your 2019 Form 1040.

3. Can Private Debt Collectors Garnish Stimulus Money?

Now I’ve seen some debate on this, but there’s actually nothing in the CARES Act that prevents private debt collectors from garnishing your stimulus money in your personal bank account.

Now, the government can’t take this money from you, even if you’re behind on student loans or back taxes — with the exception of past due child support.

So right now I’m talking about private — not government — debt collectors who have received a garnishment order to seize money in your bank account.

Now, some states have issued laws preventing debt collectors from issuing new garnishment orders due to the crisis, but these are a minority of states, and there is at this time no federal law in place to this effect to prevent private debt collectors from garnishing stimulus payments.

Two senators — Republican Sherrod Brown of Ohio and Josh Hawley of Missouri — are currently urging Treasury to enact emergency measures to prevent private debt collectors from seizing stimulus payments.

Will that happen?  I don’t know.  My advice is if funds in your account is subject to garnishment by private debt collectors, keep an eye on your account and get that money out of there ASAP if possible.

4. H&R Block Emerald Card

Lots of people are wondering if they got their tax refund deposited on their H&R Block Emerald Card if their stimulus payment will be deposited on that card.

H&R Block has released an update on this situation.  It’s not a complete answer to the question, but it’s a start.

Here’s the latest:

• If you received a Refund Advance or used Refund Transfer, and you got your refund on your Emerald Card, it has yet to be determined how the IRS will send your payment. H&R Block says that they anticipate knowing this soon.
• But if you did not receive a Refund Advance or use Refund Transfer, and you get your refund on your Emerald Card, your stimulus payment will be sent to your Emerald Card.

Now, what about TurboTax?  I message them everyday for guidance, just this morning here’s what they said: “We don’t know.  We are working with the IRS to get more information on this and will update as soon as we have more information. You can check https://turbotax.intuit.com/stimulus-check/ for more information.”

5. Minor SSA Updates

Social Security Administration Commissioner Andrew Saul published a blog post yesterday about the IRS portal that was released yesterday, not really sharing anything new (with one small exception), but just confirming things that I’ve been sharing with you.

SS Recipients with Children Under the Age of 17

Here’s what he says: “People who receive Social Security retirement, survivors, or disability insurance benefits and who did not file a tax return for 2018 or 2019 and who have qualifying children under age 17 should now go to the IRS’s webpage to enter their information instead of waiting for their automatic $1,200 Economic Impact Payment. By taking proactive steps to enter information on the IRS website about them and their qualifying children, they will also receive the $500 per dependent child payment in addition to their $1,200 individual payment.”

This is exactly what I said yesterday at about one minute into my IRS Portal walkthrough.

New Social Security Beneficiaries

But here’s actually something that I haven’t covered — if you are a new Social Security beneficiary as of January 1, 2020 — so you were not on Social Security before 2020 — and you did not file a 2018 or 2019 tax return, you will have to use that IRS portal from yesterday.

I’ll Say It Again About SSI

There’s a vocal minority of commenters on my YouTube channel — and I call them the SSI deniers — who think I’m wrong with respect to what SSI recipients have to do in order to get a stimulus payment as of right now.

My position has been — and you can watch my video on this that I published this past Wednesday — that stimulus payments to those who only receive SSI are not automatic and that you should file a simple tax return if you don’t want to worry about it anymore.

This is consistent with what Commissioner Saul wrote yesterday: “For SSI recipients who do not have qualifying children under age 17 we continue to work closely with Treasury in our efforts to make these payments automatically.”

That is to say, they’re not automatic as of right now.  SSA might succeed on Monday with making it automatic for SSI with Treasury — and if they do, great!  I’ve been saying that I want it to be automatic for y’all since Day 1, but as of right now, the SSA Commissioner is saying it’s not automatic as of right now — or else they wouldn’t be still working on it.

That means if you just want to be done with it and not have to worry about it anymore, file your simple tax return.

You can use the TurboTax one that I walked through a week ago OR you can use the IRS one I walked through yesterday.

But don’t do both.  If you already did the TurboTax one and it was accepted, you’re good to go.

6. 1031 Exchange Deadlines Have Been Extended

If you happened to be in the middle of a 1031 exchange when this crisis happened, and your due date for your 45-day identification period or your 180-day exchange period fell on or after April 1, 2020, but before July 15, 2020, then your due date got extended to July 15, 2020.