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Central Coast residents missing 2nd stimulus payments, delay caused by IRS account error

Posted at 5:42 PM, Jan 08, 2021
and last updated 2021-01-09 01:12:01-05

Millions of Americans are still missing their second round of stimulus checks and some on the Central Coast say they have no idea when they might get the money.

People started seeing the $600 payments directly deposited to their bank accounts on January 1, but millions are delayed in part because the IRS wired the money to the wrong accounts.

*UPDATE* We know how important stimulus funds are for so many Americans and that everyone is anxious to get their...

Posted by TurboTax on Wednesday, January 6, 2021

Morro Bay resident Hana Erickson is one of the millions of Americans still waiting for a $600 stimulus check from the government.

Her first payment in April was deposited no problem, but that's not the case the second time around.

“As a single mom and as an essential worker, I feel cheated,” Erikson said. "I pulled up the payment to 'Get My Payment' portal and it said ‘payment #2 unavailable.'”

The message says the funds are not available because the IRS either doesn't have enough information or because the person isn't eligible to receive it.

Erickson says that's not true in her case.

When she called the IRS, she was directed to claim the Recovery Rebate Credit on her 2020 tax returns which could take weeks, even months to get and it's money she could use now to support her son.

“I would appreciate that money because we are going through a second shutdown, all of our hours are being cut, we need this now and we should get it now,” Erickson said.

San Luis Obispo resident Fanny Arenas is experiencing that same frustration, confused about the agency's hiccup.

“They had the correct information the first time so I’m not sure where they possibly could have sent that money to,” Arenas said.

When she checked her IRS stimulus payment portal, she saw that her funds were also not available, but as she dug deeper, she found the payment was received on January 4, according to her IRS account. She says that money was never reflected in her bank account.

Arenas, like many others who filed their 2019 tax returns with either TurboTax or H&R Block, got an email explaining the reason for the delay of payment.

That message says the IRS deposited the money into the wrong account and they're working with the agency to reverse it.

“The first time it was so easy, there were no glitches. The second time should have been better because the first system was already in place, and to have all of these things kind of glitch still is concerning,” Arenas said.

In a statement, the IRS said, "Some recipients may have had their payment directed to the temporary bank account established when their 2019 tax return was filed..." and is asking people to patiently wait and continue checking their bank accounts.

That patience is running low for many hard-working Americans.

“People are hurting and they need their money so we need to figure out what the heck happened there,” Arenas said.

About eight million people will receive their stimulus payments in the form of a prepaid debit card.

It's unclear how people are selected to get the debit card, but the IRS says those still waiting for a check should check their mailbox for it this month.

Eligible taxpayers who don't receive the payment or the full amount are encouraged to claim it electronically on their 2020 tax returns.