Stimulus Payments 101
Last week, people across the country started receiving their stimulus checks. Even though 80 million Americans woke up to a direct deposit, there are still roughly 60 million awaiting their money which could be in the form of a check or direct deposit. With 90% of our population eligible to receive stimumlus funds, you might be wondering where your money is.
Here are some common reasons why you didn’t wake up (at least) $1,200 richer.
1. You do not meet the eligibility requirements.
2. You did not receive a tax refund for your 2018 or 2019 taxes.
3. You no longer use the bank account on file with the IRS.
4. Your check was deposited into a temporary account set up by your tax prep service.
5. You used a paper form to file taxes instead of filing electronically.
6. You are a non-filer and have not updated your information with the IRS.
If you have been expecting a deposit and haven’t seen it come in yet, take a break from hitting F5 (refresh) and visit the IRS Economic Impact Payments page. You can review the document to ensure you meet all of the eligibility criteria, check your payment status, confirm your payment type, and update your bank account or address. If you are a non-filer, you can use the non-filer tool to enter payment information.
Remember, payments are sent in waves, so there is no need to panic if you haven’t gotten your check yet. If you find yourself waiting on a paper check to arrive in the mail, remain vigilant. Scammers are using this opportunity to try to con people out of their money and/or personal information.
Tips to avoid scammers
The IRS will NOT call, email, or text you asking for your information in order to “process” your stimulus check. Be sure to only use the irs.gov/coronavirus site to submit your personal information.
The IRS will NOT contact you on social media.
You NEVER have to pay to receive a stimulus check. Likewise, you will never be asked to deposit funds and send money back because of an overpayment or oversight.
Verify the amount on any physical check you receive. Real stimulus checks will be round numbers (no change), and you can easily verify the amounts on the IRS page. Remember – eligible individuals will receive $1,200 (or $2,400 for married couples) plus an additional $500 per eligible child. There are some variations based on annual income, but MOST people can use these numbers to determine their stimulus check amount.
An official check from the IRS will have identifying characteristics outlined by the U.S. Secret Service and U.S. Treasury Department. This press release will help you spot a phony stimulus check.
Pay attention to the way the paper check feels. Official checks are printed on special paper, which has more weight and texture to it. If the paper feels flat, light, or smooth, it’s likely not a real check.
You might be looking for work-at-home opportunities. Unfortunately, this is a common way that scammers steal your money. While there is never a good time to be conned out of your hard-earned money, it may be even worse now amid a global pandemic and economic crisis. Many companies are indeed testing the waters now with legitimate ways for people to remain employed while working remotely from home, but that doesn’t mean that all of the ads you see for these jobs are real. So, how do you spot a fake ad from a real ad?
If you are asked to pay for anything upfront, it’s probably a scam. This includes a fee for leads, training, certifications, etc. Some very popular companies ask you to purchase inventory up-front and sell to your local customers. I would urge you to use caution before jumping into a business like this right now. If you are dead set on starting a multi-level marketing company, please humor me, wait until after we’ve made it through this world-wide crisis before investing. The economy isn’t exactly stable, and paying for your inventory upfront (even at a “good” price) means you won’t have that money to fall back on when you need it.
Google is your friend. Do your research. Look at reviews. Dig deep, because it is not uncommon for companies to post fake reviews praising the company or products. Have you seen things like this on Amazon? I have. Remember the “masks” available at deep-discount prices?
Grammar matters. If an ad or email sounds poorly written, think twice. While we are all human and make the occasional error, a communication riddled with grammatical errors, missing punctuation, peculiar formatting, and misspelled words is at best not professional, and at worst, a scam. Don’t fall for it.
Keep yourself up to speed with common scams. In the financial industry, we tend to see it all, so I’ve written many Blog posts about this topic:
Looking for someone to talk to during isolation? Drop me a line in the comments or send me an kkyte@infirstfcu.org.
Krista Kyte is a personal finance blogger and personal banker with over 17 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.
