Social Security Checks Deposited Directly; IRS Sends EIP Check Anyway

[BobKamman]

I kept telling my clients who receive Social Security payments directly deposited to their bank accounts, that IRS will deposit their EIP the same way.  Now I have to tell them that I lied.  Well, I'll have to apologize for what IRS and the Munchkin told us.  A client called yesterday -- he's been receiving Social Security benefits since 2018, same bank account -- and told me that his check came in the mail last week.  

Meanwhile, have you seen the stories about how the EIP debit cards come in a plain white envelope, and people are throwing them away because they look like junk mail?  

[IRonMaN]

Well, what do you expect when you have munchkins running the show.  The only thing we seem to be missing are the flying monkeys.

[Just-Lisa-Now-]

Yep, looks like SS recipients that filed a return have been getting checks....but at least theyre finally getting the money!  My friend on SSI got hers by direct deposit though.....so Im wondering if youre on SS and dont file a return, then you get the DD....so what Munchkin said may be partially true.

I havent not seen any of the debit card stories...isnt it only certain service centers that are sending out the cards?

[itonewbie]

@Just-Lisa-Now-Here's the press release about EIP Cards.  Apparently, it's only applicable to those who filed a return with the Andover and Austin service centers but do not have the bank account details for direct deposit on file with the IRS.  It is, nevertheless, not evident why these two service centers were singled out.

https://home.treasury.gov/news/press-releases/sm1012

[Tommytg]

I have been following this odyssey since day one and sharing with my clients and family members what I receive from the IRS and my tax  reporting services only, so that I share what I know to be fact and not rumor.  What I have learned for sure is that there is no rhyme or reason as to how the IRS sends either direct payments or checks.  I had a client who filed only his 2018 return get his payment and another not.  There's no sense to it BUT there is a table for check payments to which the IRS has been adhering.  And even that has changed since 5/13/20 when they began accelerating the amount of checks produced each week.  My recommendation is to simply accept the payment as it comes without regard for the payment format, and forget about changing anything with them.  You can check all their boxes and still not receive your payment timely, as happened to me.  It wasn't until I went to their website and entered my bank info that I was able to speed up my payment processing by at least a month.  Others that I know of have not been so lucky and are still waiting for their payments.  As I've been saying all along, good luck getting your buck.  Tom Bruzda, E.A.

[BobKamman]

Andover?  Who files with Andover?  Some returns with payments go to Hartford, 112 miles away.  IRS likes to ship paperwork around, so they can spread the private contractor money to different states and Congressional districts.  

[qbteachmt]

My understanding is that there is a bit of a hierarchy is "solving for X." If you file taxes and get refunds by Check, you get EIP as Check. Even if you get SS direct deposit. The EIP is first based on tax returns. It's like rock, paper, scissors.

Tax return 2019

Tax return 2018

SS or other benefit

Here is the card info:

https://www.eipcard.com/

And those of us signed up for e-newsletters have been getting this info for nearly a month. CFPB, for instance, mentions prepaid cards in the April 30 article:

https://www.consumerfinance.gov/about-us/blog/guide-covid-19-economic-stimulus-checks/

[BobKamman]

Solve for X:

2019 -- return not yet filed.

2018 -- balance due paid.

Social Security -- Yes, direct deposit since 2018. 

This client received a check, based on 2018 income.  First (and probably last) year his AGI exceeded $75K.  I just watched a seminar in which it was stated that IRS has a "one check only" policy for the rest of the year.  If you received $200 before filing 2019, you're not going to get the other $1,000 before filing your 2020 return.  Same thing, for unfiled returns from parents of babies (twins, triplets, etc.) born in 2019.  

[qbteachmt]

A. 2019 not filed = not part of the consideration, then.

B. 2018 Owed, means also not part of the consideration then, for Direct Deposit. It means the mailing address is used, as is the status (filing jointly, # of dependents).

C. SS direct deposit, if not a Filer, would be used for direct deposit.

In that order.

I understand the same issues will apply regarding how much you get, and there is no immediate follow up, but the 2020 tax year filings is where we will handle reconciliation issues.