Economic Impact Payments (EIP)

What you need to know about Stimulus Payments

Updated January 8, 2021

How the Second Stimulus Payments / Economic Impact Payments (EIP) will work

As part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, you may be eligible for a stimulus payment if you filed a 2019 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 $600 for individuals or heads of household and $1,200 for married couples filing jointly. Parents may also receive a $600 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 January 4, 2021.  We will update information here as we receive additional details.

How we are ensuring you get full access to your stimulus payment

We recognize that this is an extraordinarily difficult time for our clients and their families.  In preparation for the second stimulus payment we made the decision to amend our overdraft processes to ensure that our clients have access to the full benefits of their stimulus payment regardless of their account balance.

If at the time the stimulus payment is deposited your account has a negative balance, we may apply a temporary credit to cover the negative balance in your account in order for you to have full access to your stimulus payment.

The temporary credit will remain in your account for 90 days, after which it will be reversed, and the amount will become due. You will see this transaction labeled as “Miscellaneous Bank Originated Item” online and in your statement.  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 has been or is overdrawn for 45 consecutive calendar days, the temporary credit will become due and the account will be closed, even if it’s before the end of the 90-day period. If you do not wish to participate in this service, we can reverse the temporary credit when you contact a branch. To find your local branch, visit our branch locator.

Illustrative Example

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 stimulus payment. 

Step 1: Temporary Credit Applied

Let’s say the balance in your account at the time a $600 stimulus payment is being deposited is negative $250. To ensure you have full access to your stimulus payment, we will temporarily credit the amount overdrawn into your account. Here is an example:

Illustrative Example #1

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:

Illustrative Example #2

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

IRS Payment Information Center

The IRS has launched a new Get My Payment website which allows you to confirm and track your stimulus payment status as well as confirm your payment preference for direct deposit or check and / or update your mailing address.  You can also visit the IRS FAQ page for the most up-to-date answers to your questions, 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?
  • What if my direct deposit information has changed, or I want to add it for the first time?
  • What if the amount is different from what I was expecting?

Tools to help track your payments

  • Download the Union Bank App to review your accounts, deposit checks, and more. Click for the iphone or android App.
  • Log in to your Online Banking account to create a direct deposit alert delivered via email or text message.
  • Deposit checks from anywhere, using your mobile device. Just snap a picture and click.  Watch this video to learn how.


If my account is closed and the IRS tries to deposit into it, what will happen?

We will attempt to redirect your stimulus payment to an alternate Union Bank account with the same account ownership. If we are unable to do so, the EIP will be returned to the IRS. Please refer to for information on your payment status.

Will I receive a 1099 for this amount? Will it be taxable?

Union Bank will not be sending a 1099 for the economic impact payments. We ask that you please contact your tax advisor for information on how this impacts you.