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2021 Stimulus Payments

What You Should Know About the New Round of Payments

The Federal government is preparing to send a third Economic Impact Payment, or Stimulus Payment, to help Americans cope with the financial difficulties brought on by the COVID-19 pandemic. Here is the latest information about the upcoming Economic Impact Payment. For more details, visit the IRS website.

On March 6, Congress signed off on the American Rescue Plan Act, which will send another round of Economic Impact Payments to millions of American households. This Act was signed into law on March 11. We have a summary of some of the provisions of The Act that may apply to you as an individual and/or business owner.

  • Single tax filers with an Adjusted Gross Income (AGI) of up to $75,000, and heads of household with an AGI of up to $112,500 are eligible for a $1,400 payment.
  • Married couples with an AGI of up to $150,000 are eligible for a $2,800 payment.
  • Single filers, heads of household, and married couples will also receive $1,400 for each dependent.

Payment amounts will decrease for those who make more than the amounts listed above.

Fraud Alert!

Fraud related to Covid-19 is on the rise because of the economic stimulus payments. Protect yourself from financial loss by remembering that:

  • The IRS will not contact you by phone, email, or text about your Economic Impact Payment or any taxes owed. If you receive a suspicious email or text, do not respond or click any links.
  • Bay Federal will never contact you by phone, email, or text to ask for your online banking password, card PIN, or other confidential information. If you receive a suspicious communication related to Bay Federal, contact us immediately at 831.479.6000 or 888.4BAYFED, option 3.

If you are having trouble paying your bills or are behind on monthly payments, help is available. Please consider speaking with a GreenPath financial counselor. The service is free and confidential. You don’t have to do this alone. We also have other options to help members affected by the pandemic.

Who is eligible for Economic Impact Payments?

U.S. citizens, including children, and resident aliens who are not claimed as a dependent on someone else’s income tax return, have a Social Security number, and meet certain income requirements are eligible for the payment. 

How much money will I receive from the third Economic Impact Payment?

Eligible individuals will receive up to $1,400 ($2,800 for married couples) and up to $1,400 for each dependent. The amount you receive will be based on your adjusted gross income (AGI) for 2020, or for 2019 if you have not filed 2020 tax returns. See the IRS website for more information.

Do I need to do anything to receive the payment?

  • If you received an Economic Impact Payment in the past, there is nothing you need to do to get the next payment.
  • If you did not receive a previous payment, use the “Get My Payment” tool on the IRS website to make sure the IRS has the information needed to send a payment to you.

When will I receive my payment?

Payments are expected to begin as early as March 17, 2021. Login to BayFedOnline or the BayFed Mobile app to monitor your account for payment arrival.

You can also check the status of your payment by using the “Get My Payment” tool on the IRS website. Expect frequent updates to “Get My Payment” and check back if it is unavailable.

How will I get my payment?

Payments will be sent in one of the following ways:

  • Direct Deposit. If a previous Economic Impact payment was sent via direct deposit into your checking account, you will likely receive other payments the same way. Look in your account summary for “IRS TREAS 310 XXTAXEIP2” or something similar.
  • Paper Check. Checks can be deposited with the BayFed Mobile app on your smartphone or in person at any Bay Federal Credit Union branch or ATM, or send your check with your full name and account number to Bay Federal Credit Union, 3333 Clares Street, Capitola, CA 95010.
  • Debit Card. If you receive a debit card, follow the instructions you receive to activate the card, use the card for purchases, or transfer funds from the card into your checking or savings account.

Should I call or visit a branch if I have questions about my payment?

You can, but if you do not want to wait in line or on hold, you can get information more quickly with the following tools:

  • Log onto BayFedOnline on your computer or mobile device to monitor your account for a direct deposit from the IRS.
  • Check the status of your payment with the “Get My Payment” tool from the IRS. If you are unable to get information, wait and try again later.
  • Get updates on the IRS website, or download the IRS2Go mobile app.

What if I still haven’t received any payments?

If you did not receive any Economic Impact payments or if you received less than the full amount of either payment, you may be eligible to claim a Recovery Rebate Credit when filing your 2020 taxes. This credit may increase your 2020 tax refund or reduce the amount of income tax you owe.

Will I have to pay income tax on my Economic Impact Payments?

No, economic impact payment funds are not taxable, but you must enter the payment amounts you receive on your tax return.

I did not file some of my tax returns in the past. Will this affect my ability to get an Economic Impact Payment?

It might; however, keep in mind that there are no penalties for filing late tax returns if you are owed a refund or do not owe any money.

I've closed the credit union or bank account that I had my former tax refunds and/or stimulus payments sent through direct deposit. How can I receive this new stimulus payment?

Some Bay Federal members’ accounts on file with the IRS from the first and second rounds of congressional stimulus/relief in 2020 are no longer active for a variety of reasons.
 
Because of this issue, there are two ways you can still receive payment if you did not receive an electronic transfer from the second round of EIP (December 2020) or you foresee not receiving funds electronically from this upcoming round:

  • Members may be issued a check through the mail to the address the IRS has on file (the address on your most recent tax returns or as updated through the U.S. Postal Service) if an electronic payment cannot go through.
  • However, if the IRS received a rejected electronic payment from a member’s deposit account after Dec. 31, 2020, then a check was not issued to that member. In this case, you will need to claim the 2020 Recovery Rebate Credit on a 2020 tax return. For eligibility, click here.

What other support does the American Rescue Plan Act provide?

  • Unemployment Benefits. Unemployment benefits will be extended until September 6, 2021. The weekly supplemental benefit of $300 will continue running through that date, and the first $10,200 of unemployment benefits will be tax free for people with an income of less than $150,000 (this only applies to unemployment paid in 2020). The Pandemic Emergency Unemployment Compensation (PUAC) program and the Pandemic Unemployment Assistance benefits for self-employed, gig workers, part-timers, and others who are usually ineligible for regular unemployment benefits will both be available through September 6, 2021.
  • Health Insurance. In the past, individuals who lose their health insurance due to job loss must pay a minimum of 102 percent of the premium of insurance secured through COBRA. Under the American Rescue Plan Act, the government will pay the entire COBRA premium from April 1 through Sept. 30. Look for more information on the USA government website.
  • The Child and Dependent Care Tax Credit, which helps eligible families offset the cost of caring for children under age 13 and other dependents, will now be fully refundable and worth up to $4,000 for one qualifying individual or $8,000 for two or more. The credit is calculated by taking up to 50% of the value of eligible expenses up to certain limits. See the IRS website for details.
  • The Child Tax Credit will be expanded from $2,000 per eligible child to $3,000 for children ages 6 through 17, and to $3,600 for children ages 5 and under, and will be fully refundable. More details and eligibility requirements can be found on the IRS website.
  • Housing. Rent and utility assistance will be available to people who are struggling with their housing costs and are under risk of being evicted from their homes.
  • Student Loans. People who qualify for student loan forgiveness or cancellation between Jan. 1, 2021 and Dec. 31, 2025, will not owe income tax on forgiven or cancelled debt amounts.

For details about these and other benefits offered through the American Rescue Plan Act, visit the IRS website and the USA government website.

I lost my job. Where can I get help?

Information on how to apply for unemployment benefits, workers’ compensation, welfare or temporary assistance, and other programs and services that can help you if you lose your job can be found on the USA government website. You can also speak with a GreenPath financial counselor for help with budgeting and working with creditors to keep loan payments up to date. We also have other options to help members affected by the pandemic.



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