Direct deposit and your second stimulus check: Everything you need to know - CNET

Stimulus check money is on the way now that it's been signed into law.

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Second stimulus checks of up to $600 per person -- here's how to calculate your household's total payment -- are already going out through direct deposit into tens of millions of bank accounts. The upshot is that tens of millions of people will automatically receive the second round of stimulus payments this way. But, as with all things related to stimulus checks, the situation isn't totally straightforward, and there are some facts you should be aware of.

For example, while you don't have to actively register to receive a second stimulus check this way, you also have very little control right now about finding out information or noting if something goes wrong. The can be frustrating it you're constantly monitoring your bank account for a new deposit of your second stimulus check, if you aren't sure why you got the amount of money you did (here's who may not qualify) and if you should keep an eye out for a paper check or EIP card instead.

We'll help you stay informed about what you need to know. Meanwhile, here's where the situation stands with a potential raise from $600 to $2,000 for that second stimulus payment, and here's what we know about a third stimulus check. This story has updated with new information.

Direct deposits of a second stimulus check are going out now for these people only

The IRS is calculating second stimulus check totals and the US Treasury is cutting the payments. They're going out now to people who already have direct deposit set up with the IRS. There is currently no way to register your information if you're not already on file with the IRS. That means you'll likely get a paper check or EIP card through the mail, both methods that could take much longer (more on this below).

Here's how the IRS would have gotten your banking details:

• Your most recently filed tax return if you received a refund by direct deposit in 2018 or 2019.
• If you registered your banking information for the first check through the IRS' Get My Payment online tool.
• You provided bank information through the Non-Filers: Enter Payment Info Here tool if you don't typically file taxes.

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It isn't clear if you'll be able to enter your banking information to elect direct deposit

With the first round, the IRS let people enter their direct deposit information using an online tool as a way to potentially get their payment faster. In fact, the IRS encouraged it, setting a May 13 deadline for new submissions. The IRS hasn't specifically said if it will allow new banking details, though it's possible that might not happen due to a Jan. 15 cutoff for sending payments -- more on that below. We've asked the IRS for clarification.

You'll be able to track your second stimulus check soon, but not yet

The IRS is in the process of updating its online tracking tool, the Get My Payment portal, so you can check the status of your first and second payments. The tool should be available shortly. We'll update this story once it's available.

What happens on Jan. 15?

Jan. 15 is the cutoff date proscribed by the December stimulus bill for when the IRS and US Treasury must stop sending new stimulus checks, through direct deposit and the mail. 

Anyone who doesn't get a second stimulus check sorted by that date would have to take the extra step of claiming it as a Recovery Rebate Credit as part of the 2020 tax season, presumably with exceptions for people not typically required to file taxes. 

That means the timing for getting paid would vary wildly depending on when you're able to complete your taxes and how quickly the IRS would process your tax return. For example, people who file in February could receive their second stimulus money months before people who file in April. It isn't clear if applying for a tax extension would further delay matters.

You may need to set up direct deposit with the IRS if you don't have it already in place.

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Can I change or correct my banking details with the IRS?

With the first checks, you could use the Get My Payment and Non-Filers tools to provide the IRS with your banking information. The IRS has said, however, it does not allow people to change the direct deposit information for a stimulus payment it has on file. This is a safeguard against fraud. 

The IRS said if your banking information has changed or is incorrect or the bank account is closed, the bank will reject the deposit and the federal bureau will then mail the payment to the address it has on file. For help, you could attempt to call the IRS assistance phone number at 800-829-1040. For specific questions on stimulus payments, call here's the number for the IRS help line: 800-919-9835.

If you've moved, you can provide the IRS with your new mailing address.

If direct deposit opens up again, do you have to have a bank account?

According to the Urban Institute, people with bank accounts and direct deposit (who are disproportionately white) were more likely to get their first stimulus check by the end of May than people who identify as Black, Hispanic or were below the poverty line. This was directly tied to groups who were more likely to have banking accounts and who filed that information with the IRS to facilitate direct deposit tax returns.

Bank of America, JPMorgan Chase, Wells Fargo and several other large banks now offer more affordable checkless bank accounts as part of a program to make it easier for people to get bank accounts. 

Read more: Sorry, not everyone will get a second stimulus payment

What kind of information does the IRS need to set up a direct deposit if that opens back up?

While the IRS has not said whether it will allow you to provide banking information for the second check through the Get My Payment tool, if it does, you'll want to have on hand your bank account type and routing and account numbers. You have several ways to find this banking information. We've asked the IRS for clarification.

Banking website: Your bank's website may show your routing and account numbers. Log in to the account you want to use, and look around for the numbers you need.

Banking app: If your bank has an app, it may show you your account and routing numbers. In the app, tap the account you want to use to see the account and routing numbers.

Printed check: At the bottom of your check you most likely will see three sets of numbers: The first set of nine numbers is your routing number. The second set of 8 to 12 numbers is your account number. The third set is the one you don't need for direct deposit, as it's the number of the individual check.

Check this IRS page for more help with locating your routing and account numbers.

For more on the checks, here's how to calculate how much money you might get in a second stimulus check and everything you should know about stimulus qualifications now.

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