Originally posted March 12, 2021. Updated on March 18, 2021 with the new tax filing deadline.
On March 11, 2021, U.S. President Joseph R. Biden signed the American Rescue Plan bill authorizing additional Economic Impact Payments (EIPs)—also known as stimulus payments—to many Americans to help them pay expenses during the COVID-19 pandemic.
Following are a few key points to keep in mind if you think that you may be receiving a stimulus payment in the coming weeks. Please visit the government website irs.gov for more detailed information, which will be updated as new information becomes available.
Who will get a stimulus payment and how much will it be?
- The government will use 2019 or 2020 federal tax returns to determine eligibility for stimulus payments. Many Americans have not yet filed their 2020 taxes, so the federal government will calculate stimulus payments based on 2019 tax returns.
- Individual tax filers with 2019 or 2020 adjusted gross income less than $75,000 will get $1,400.
- For taxpayers who filed jointly as a couple and earned less than $150,000 in 2020, the husband and wife will both receive $1,400 each.
- Tax filers get an additional $1,400 per dependent regardless of age; this means that families will now receive the additional money for adult dependents over the age of 17.
- Tax filers using the head of household status and who earn less than $112,500 annually also get $1,400, plus the additional amount for children or other dependents.
- For individuals without children with an income of $80,000 or more annually, the payments go to zero, and also heads of households who earn $120,000 or more, and married couples who earn $160,000 or more will receive no new stimulus funds.
- Eligible individuals who don't receive a payment via direct deposit or mailed check will probably have to request a $1,400 refund when filing their 2021 tax returns.
When will I get my stimulus payment?
- Distribution of economic impact payments is expected to begin in mid-March 2021 and continue for several weeks, and the payments will be distributed automatically, with no action required for most people. The Internal Revenue Service (IRS) will calculate and automatically send the economic impact payment to those eligible for them.
- If you have not received a stimulus payment by the third or fourth week in April 2021, you should check this IRS site for more information on payments—only the government has this information.
How will I get my stimulus payment?
- The IRS will direct deposit payments into a financial account that the tax filer provided on their most recent tax return. If direct deposit with the IRS has not been set up by the tax payer, the IRS will mail checks or prepaid debit cards.
Is there anything I can do that will help me get my payment faster?
- Please note that Delta Community cannot do anything to speed up government payments; it receives money when it is provided by the government.
- The most important thing members can do to assist with getting their stimulus payment as quickly as possible is to ensure their savings/member account and checking account numbers provided for direct deposit are correct with other financial institutions and with the IRS. Members are responsible for providing their correct Delta Community account numbers to other organizations where they have accounts or relationships, including to the Internal Revenue Service.
- The single biggest difficulty that Delta Community encounters that delays deposits is regularly having to go into our systems and manually correct members' checking or savings/member account numbers that have been provided for direct deposit. If we receive thousands of payments with incorrect account numbers, it will take several days to manually correct each one. If an account number must be manually corrected then it will not show up in an account as a pending deposit.
- For members, your savings account number—and only your savings account number—is also your member number; Delta Community savings account numbers and member numbers are always the same. Your checking account number is distinct and not derived from your member number in any way.
To make sure you are providing the correct account number for direct deposits, log in to Online Banking and review the My Accounts section:
- Select the account you want to review.
- Click the arrow next to Account Details.
- You can see the type of account and the MICR number. That MICR number is the account number you need to provide for direct deposit.
- If the account number has a (-), you only need to provide the account numbers before the dash; the four numbers after the dash are not needed.
If you do not have Online Banking and are unsure of your savings/checking account number, please contact our Member Care Center via our toll-free number at 800-544-3328 or locally at 404-715-4725 for assistance.
What can I do with the stimulus payment and will I have to pay taxes on the payment?
- You can use the stimulus payment to pay expenses, which many people are expected to do.
- If you don't need the money right away, you might consider putting it into a Certificate of Deposit.
- Because the money is coming from the government, it is not considered taxable income and will not be subject to income taxes. Remember that the filing date for 2020 federal taxes has been extended to May 17, 2021, although individuals affected by the winter storm and power outages in Texas in mid-February may qualify for a longer extension.
Please check the government website irs.gov for the latest information on the latest economic impact payments and related information.