03/13/2021
Hey Everyone! Here are some updates directly from the Bank.
Industry Update
American Citizen Coronavirus Relief (EIP 3)
March 12, 2021
The President signed into law the American Citizen Coronavirus Relief Act which includes stimulus payments (EIP 3) to eligible taxpayers.
Who is eligible?
Individuals making $75,000 or less a year and their dependents each would receive checks of $1,400 each. The payments decrease gradually for individuals earning above $75,000 — and they phase out completely for individuals making $80,000 or more. That’s a change from a prior income cap of $100,000.
Couples who file taxes jointly and earn $150,000 or less a year and their dependents each will get full payments of $1,400. The checks become gradually smaller for joint filers making above $150,000, and they phase out entirely at $160,000. That’s a change from a prior income cap of $200,000 for couples.
“Head of household” filers, such as single parents, would see a phase-out starting above an income level of $112,500 and no payments at $120,000 vs. a previous cap of $150,000
When are they being distributed?
Payments will be made in tranches over the next several weeks, with the first wave going out next week – with a settlement date of Wednesday, March 17th.
The first wave is expected to be over 90 million payments to the easiest to reach taxpayers using predominantly direct deposit with a small portion of checks going out starting the end of next week. The IRS will be using payment data based on a combination of using 2020 returns already processed with the remainder using 2019 tax return information.
Will Meta Bank process the payments?
We do not expect to receive any EIP 3 payments since the IRS will be using the customer ACH information to make the payment directly, however, if we do receive any payments mixed in with tax refund payments – we will process them to ensure the customer has faster access to the funds.
The IRS will be updating their Get My Payment tool once payments are made for consumers to get more information. They will also publish Q&A information on their website. We will continue to update as any new information becomes available.
Thank you for Continuing to Trust Brown’s Tax Service with all of your tax and stimulus related needs!