Stimulus checks were given out during the second quarter of the year, as millions of taxpaying Americans received their money through a check or a direct deposit on their bank account. But another method is still a new concept to some.
Stimulus checks payment methods
Many Americans qualified to get a stimulus check do not know what an EIP card is and what it is used for.
From April to June, an Economic Impact Payment card, also known as EIP card, was mailed as a stimulus payment to 4 million taxpaying Americans instead of an actual check or instead of a direct deposit.
That means that if there will be another stimulus check coming by the end of the year, it is possible that the IRS will send another EIP cards and it will be given to millions of eligible Americans.
What is an EIP card?
An Economic Impact Payment card or EIP card is a prepaid debit card distributed by the Treasury Department to millions of Americans under the CARES Act instead of transferring the stimulus money through electronic money transfer or sending physical checks.
The EIP cards were given to eligible Americans who do not have their banking information filed with the IRS. These debit cards are powered by Visa. It can be used to withdraw money from ATMs, make purchases online and on physical stores, and transfer funds to a bank account without any extra fee.
If you received an EIP card in the mail, you need to access the EIP card website eipcard.com to activate it and learn more about how to use it.
Why did some get the EIP card?
Some American taxpayers who were eligible to get the first round of stimulus checks received EIP cards instead of physical checks because the IRS did not have their bank account information on their system after filing their taxes, as seen on the IRS Website.
According to a press release done by the Treasury, if IRS service centers processed the tax return in Austin, Texas, and Andover, Massachusetts, they received EIP cards instead of stimulus checks.
Since the talks for a second stimulus bill is back on the negotiating table, the payment method may be the same. If you are one of those who received an EIP card in the mail, there is a chance that you will receive another EIP card for the next round of checks.
How much will the stimulus money be?
Those who receive EIP cards will get the same amount as those who got their stimulus money through bank transfer and checks. The only different thing is the format of the payment.
Once the bill is passed for another round of stimulus checks, the amount of money that you will receive will depend on your adjusted gross income, your marital status, your tax filings, and the number of dependents that you have.
On the first round of stimulus checks, a single taxpayer received $1,200, while married couples received $2,400. Their dependents received $500, each with a maximum of three dependents.
Who counts as dependents?
A dependent falls into two categories, a qualifying child and a qualifying relative. To claim a qualifying child as a dependent, they must be younger than 19 years old, or they should be a student that is younger than 24 years old. If your child is permanently disabled or disabled, you can claim them as your dependent no matter what their age is.
To claim for a qualifying relative, they must meet the criteria given by the IRS on irs.gov. You can include an elderly relative who relies on you financially for care.
Related Article: Stimulus Checks of $1,200 Could Be Sent Out November 3 As Soon As Congress Reaches Deal
