Millions of Stimulus Debit Cards To Be Sent Out Starting This Week
The seal of the U.S. Treasury hangs on the podium during Secretary Henry Paulson's news conference at the Treasury Department September 19, 2008 in Washington, DC. Paulson said that the Treasury will insure money market mutual funds as one part of a massive government bailout that is attempting to stabilize the current financial crisis. Chip Somodevilla/Getty Images)

The Treasury Department announced Thursday that around eight million stimulus payments in the form of debit cards would be sent out by the agency to eligible beneficiaries starting this week.

MetaBank N.A. will issue the debit cards or the Economic Impact Payment cards. According to a CNBC News report, it will arrive in a white envelope with a prominent display of the U.S. Department of Treasury seal.

The cards will have "Visa" on the front and MetaBank on the back. The envelope will also include instructions for activating the cards. During the first round of stimulus checks, many people threw the cards away as they did not expect to receive them.

About four million Americans received debit cards during the first round of stimulus payment last year. Those debit cards that were used before can not be reused for the second round of stimulus checks.

According to a Treasury press release, about eight million new debit cards are being released for the second round of payments. These will be sent to Americans in all 50 states, including Washington D.C., according to a Business Insider report.

Money Network Cardholder Services will send the debit cards containing the stimulus payments. The cards could be used to withdraw cash from an ATM, transfer funds to a bank account, issue a check, and make purchases wherever a "Visa" is accepted.

However, only one card would be given to every family. For example, a couple who files taxes jointly and is getting an additional payment for a child dependent will get one debit card.

Recipients of the debit card will be able to register the card for online access. They can also check their balance and transaction history through EIPCard.com. The federal government will not have any access to the recipient's transaction history.

Who Are Eligible for Stimulus Checks?

Individuals earning under $75,000 and heads of households under $112,500 typically qualify for the full $600 stimulus payments. Those married and filing jointly or surviving spoused earning under $150,000 usually qualify for a $1,200 payment.

If you surpassed the income requirements to receive a stimulus check, you might still receive a reduced payment. However, the $600 payment phases out completely at $87,000 adjusted gross income (AGI) for individuals and $174,000 AGI for couples filing jointly, according to a Forbes Advisor article.

Meanwhile, those people with qualifying children dependents will receive an additional $600 per child. But children claimed as dependents who are 17 years old and older are not eligible for the child payment.

For adults who are identified as dependents, they are not eligible for a second stimulus check, unlike the first round of imposed stimulus payments.

Changes From The First Stimulus Payments

Eligible children will receive the full stimulus payment amounting to $600 that increased from $500 in the CARES Act. Also, eligible families with mixed immigration statuses can now receive both EIP cards.

You might be able to claim the Recovery Rebate Credit on your 2020 tax return if you did not receive the first stimulus payment due to the exclusion in the CARES Act. The new measure also extends benefits to eligible taxpayers and children who have a work-eligible Social Security number.