(ReliableNews.org) – America continues to spiral into the abyss of increased infection rates and daily deaths in the face of the COVID-19 pandemic. Harsh quarantines and other restrictions have ravaged individuals and the nation’s economy.
Congress passed the second COVID-19 relief package on December 21, authorizing nearly a trillion dollars of relief aid for households and businesses decimated by the pandemic and its accompanying quarantines and other restrictions.
By January 5, 2021, the Department of Treasury had distributed more than $110 billion worth of the $600 payments for working-class Americans and their eligible children, well over half of the estimated $164 billion total cost of the payments.
Those figures suggested the second round of stimulus payments should go out much faster than the first round of $1,200 that went out in the spring of 2020.
That’s about the time everything went south, and the Treasury Department realized they had a substantial problem on their hands.
Stimulus Checks Don’t Arrive Where They’re Needed
The New York Post reported on January 6 that taxpayers who used TurboTax and H&R Block tax services weren’t getting their checks deposited in their bank accounts as should have happened. Inadvertently, the Treasury Department had the funds sent to inactive or closed bank accounts set up as temporary cash repositories during tax season.
Reportedly, individuals who had their stimulus payments sent to inactive or closed bank accounts are ineligible to receive those funds. Instead, they may have to claim the money on their federal tax returns as a “Recovery Rebate Credit” when filing their 2020 taxes.
A subsequent New York Post article from January 8 further explained the problem, reporting that the stimulus payments were sent to about 13 million faulty bank accounts according to tax preparers working at Jackson Hewitt.
On the bright side, the federal government says it’s working now to get the payments into individual’s correct accounts instead of forcing them to file for a tax credit in April.
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