The U.S. Treasury Department and the Internal Revenue Service issued Economic Impact Payment prepaid debit cards to approximately four million taxpayers. In the following post, Optima Tax Relief reviews frequently asked questions about the prepaid cards.
The Internal Revenue Service and the U.S. Treasury Department have issued, and are currently issuing, Economic Impact Payments as a part of the Coronavirus Aid Relief and Economic Security Act (CARES) to more than 150 million taxpayers. Of those 150 million taxpayers eligible for relief, approximately four million will be receiving their payment as a prepaid debit card mailed in a plain envelope marked “Money Network Cardholder Services.”
Once activated, the prepaid debit cards can be used just like a standard debit card – you can make purchases at any retailer that accepts Visa cards and you can withdraw funds at an ATM. You can also transfer the funds to your personal bank account, if you choose. However, many taxpayers who have received or expect to receive prepaid debit cards have questions and concerns. Here are answers to a few common Economic Impact Payment debit card questions.
Can my Economic Impact Payment be transferred to a private prepaid debit card?
If you have already received your debit card, you can transfer the amount to a personal prepaid card that accepts transfers. If your personal prepaid card accepts transfers, simply visit the EIPCard website and initiate the transfer. Make sure you have the account number and routing number for your personal prepaid card.
Will I have to pay an ATM fee to withdraw funds using the Economic Impact Payment prepaid debit card?
If you use an in-network ATM, you will not have to pay a fee. To find an in-network ATM near you, visit the EIPCard website.
Some retailers offer free debit card cash-back when you make a purchase. Check with your local merchants to see if this is an option.
Can I request that my Economic Impact Payment be sent as a prepaid debit card?
No, the IRS and U.S. Treasury Department are not issuing debit cards based upon taxpayer request. Taxpayers who do not opt to have their payment direct-deposited will likely receive their payment by check, though some taxpayers will receive debit cards. The Bureau of the Fiscal Service determines who will receive a prepaid debit card.
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