New round of Economic Impact Payments now arriving

January 11, 2021

LGFCU members who filed a tax return in 2018 or 2019 may soon receive a second Economic Impact Payment (EIP) from the IRS in their account. 

In most cases, those who are eligible will receive the one-time payment automatically by direct deposit from the IRS. Funds go into the same account the taxpayer used to receive a tax refund. Financial institutions have no control over when the federal government deposits these funds. Members who are eligible for the payment, but do not use direct deposit for their tax refunds, will receive a check or debit card payment by mail.

The Economic Impact Payments are part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, and will go to millions of Americans who received the first round of payments in 2020. The coronavirus aid bill helps taxpayers cover bills, buy food and catch up on essential payments like rent or mortgage.

Check on your payment status

If you're eligible, but haven’t received your EIP yet, use the IRS Get My Payment tool to check on the status. If you received the first round of payments in 2020, but didn’t receive this second payment via direct deposit, you will likely receive a check or, in some instances, a debit card. For those in this category, the payments will conclude by January 15. 

If you chose to have your 2018 or 2019 tax refund direct deposited into your LGFCU account, log in to Member Connect to see if your EIP funds are there.

If you’re eligible, but did not receive an EIP in either the first or the second payment, you may be able to claim it when you file your 2020 taxes in 2021. If you did not receive a payment, review the eligibility criteria when you file your 2020 taxes. Many people, including recent college graduates, may be eligible to claim the EIP. You will see the EIP called the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR, since the EIPs are an advance payment of the RRC.

What if I don’t typically file a tax return or use direct deposit for refunds?

EIP is also available to people who don’t normally file a return, such as recipients of:

  • Social Security retirement
  • Social Security disability or survivor benefits
  • Railroad Retirement and survivor benefits
  • Veterans Affairs benefits

If you're eligible, your payment will automatically be sent to you by mail as a paper check or debit card in the coming weeks. However, you can also use the IRS Get My Payment tool to set up direct deposit information to receive your EIP in your account electronically.

How much should I expect to receive?

According to the IRS, individual qualifying households could receive as much as $600 per adult and an extra $600 per qualifying child under age 17. Qualifying married couples who filed a joint tax return could receive up to $1,200, plus $600 per child.

As always, be aware of scams related to the COVID-19 EIP

It’s been reported that scammers are attempting to steal EIP payments, so the IRS Criminal Investigation has provided a few tips to help keep consumers safe:

  • The IRS will not call, text, email or contact you to ask for your personal information. This includes making contact to ask you to pay a fee or confirm personal information prior to receiving the EIP. If someone does make contact with you, hang up or delete the message.
  • Don’t give out your Credit Union account, credit card or debit card numbers, or other account information in response to an unsolicited contact about your check. 
  • While Economic Impact Payment direct deposits are being processed, EIP paper checks or a debit card will be sent in the coming days. If you receive a “check” for an amount which includes cents rather than a whole number (e.g., $1,322.48) or a check that requires you to verify the check online or by calling a number, it’s fraud.

While you do your part to protect yourself against fraud, the Credit Union is also hard at work keeping your accounts safe.

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