Economic Impact Payments (EIP) / Advance Child Tax Credit (ACTC) Payments

As part of The American Rescue Plan Act, an economic stimulus measure, signed into law early this year, the Child Tax Credit has been increased.  Normally, tax filers must wait to file their income tax returns to receive the Child Tax Credit, but now eligible families will be able to get the funds distributed to them monthly, starting July 15, 2021 and continuing monthly until the end of the year.

Payments will be distributed via direct deposits or paper check For additional details on the Child Tax Credit please visit www.irs.gov.

As part of the American Rescue Plan Act of 2021, you may be eligible for a stimulus payment if you filed a 2019 or 2020 tax return, or are an eligible senior or retiree. The stimulus payment amounts may vary depending on your filing status and can be up to $1,400 for individuals or heads of household and $2,800 for married couples filing jointly. Parents may also receive a $1,400 payment for each qualifying child. Consult the IRS website to find information about your anticipated amount, if any.

Stimulus payments may be disbursed by the IRS by direct deposit using the bank account information you provided in your most recent tax filing. Alternately, a check or a pre-paid debit card may be mailed using the mailing address on your most recent tax filing. Similarly, if you receive Social Security or other government-funded benefits by direct deposit, your stimulus payment will be sent to the same bank account as your retirement or pension payments.

The IRS will distribute payments in waves over multiple weeks beginning as soon as March 17, 2021.  We will update information here as we receive additional details.

If you are a California resident, and are interested in learning about Golden State Stimulus and Golden State Grant Program click here.

We made the decision to amend our overdraft processes to provide access to stimulus payments and advance child tax credits payments in their entirety for clients who deposit their Economic Impact Payment (EIP) or Advance Child Tax Credit (ACTC) payments into a Union Bank deposit account via a check or direct deposit. 

If at the time your Economic Impact Payment (EIP) or Advance Child Tax Credit (ACTC) payments is deposited (via Direct Deposit or Check) your account has a negative balance, we may apply a Temporary Credit to cover the negative balances in your account so that you may have full access to your Economic Impact Payment (EIP) or Advance Child Tax Credit (ACTC) payments. Clients who cash their check are not eligible to receive a temporary credit.  The temporary credit will remain in your account for 90 days, after which it will be reversed, and the amount will become due.

Important information about your temporary credit:

• The temporary credit transaction will be labeled "Miscellaneous Bank Originated Item" online and in your statement.
• We'll send a reminder notification approximately 21 days before your temporary credit is scheduled to be reversed.
• If you close your account before the end of the 90-day period, the temporary credit amount becomes due and you will have 45 days to repay.
• If your account remains or becomes overdrawn for 45 consecutive days, your account will be closed, even if it's before the 90-day period ends.
• If you received a temporary credit from a prior COVID-19 Relief Payment, the temporary credit will be reversed at the end of its initial 90-day period as previously communicated.  Each temporary credit is reversed according to its own 90-day timeline.
• The reversal of a temporary credit may cause your account to go into a negative balance - please monitor account balances to avoid potential overdrafts.

• If you do not wish to participate in this service, we can reverse the temporary credit when you contact a branch.  Please visit unionbank.com/locations to find your local branch.

• If you deposited your Economic Impact Payment (EIP) or Advanced Child Tax Credit (ACTC) payment into a Union Bank deposit account and did not receive a Temporary Credit and you would like to receive a Temporary Credit please contact a branch or call us at 1-800-238-4486 Monday – Friday 7:00 a.m. to 5:00 p.m. PST, Saturday 8:00 a.m. to 5:00 p.m. PST.

   

This example is for illustrative purpose only. The actual balances, amount and timing of temporary credit issuance may vary based on the method of deposit of your COVID-19 relief payment. 

Step 1: Temporary Credit Applied

Let’s say the balance in your account at the time a $1,400 COVID-19 relief payment is being deposited is negative $250. To ensure you have full access to your COVID-19 relief payment.  We will temporarily credit the amount overdrawn into your account. Here is an example:

Step 2: Temporary Credit Reversed

After 90 days, regardless of your account balance, we will reverse the temporary credit.

Let’s say that 90 days later, the balance in your account is $300. The previously applied temporary credit of $250 will be reversed, bringing your account balance to $50. Here is an example:

Please note: If the account balance is less than the temporary credit reversal, your account may become overdrawn.

For additional examples describing scenarios for an account in overdraft status and an account with multiple temporary credit reversals, please click HERE.

How the IRS can assist

Please visit the IRS website for the most up-to-day information, including:

• Will I get a payment?
• How much will it be?
• How and when will I receive it?
• Do I need to do anything to get it?
• Can I unenroll from payments?
• What if the amount is different from what I was expecting?