Sunday, October 2, 2022

Plus-up’ Stimulus Check Eligibility

Must read

Some People Who Previously Received A Third Stimulus Check Are Getting A Supplemental Payment From The Irs Is There A Check Coming With Your Name On It

Extra stimulus checks: What are plus-up payments and who is eligible?

If you already received a third stimulus check, you might find an additional check from the IRS in your mailbox in the coming weeks especially if you filed your 2020 tax return close to the May 17 deadline. The IRS is calling these extra checks “plus-up” payments, and more than 9 million Americans have already receive the supplemental payment. Over 900,000 plus-up payments were sent in just the last six weeks, and more of them will be sent in the weeks and months ahead as the IRS continues to process 2020 tax returns. The big question is: Will you get one?

The IRS is sending plus-up payments to people who received a third-round stimulus check that was based on information taken from their 2019 federal tax return or some other source, but who are eligible for a larger payment based on a 2020 return that is filed and/or processed later. This could happen, for example, if you had a new baby last year that is reported as a dependent for the first time on your 2020 return .

Who Was Eligible For A Third Stimulus Check

Under the terms, individuals could receive up to $1,400 through the third stimulus checks. Couples who file jointly could get up to $2,800. Additionally, eligible dependents could also receive $1,400.

To qualify, you had to be either a U.S. citizen or resident alien in 2021. You also had to have a valid Social Security number, though there are certain exceptions for spouses or dependents.

You also could not have been claimed as someone else’s dependent on a 2020 tax return in order to qualify for your own payment.

To be eligible for a full payment, your adjusted gross income could not be above certain thresholds: $75,000 for individuals, $112,500 for heads of household or $150,000 for married couples.

Payments were phased out for those with incomes above those levels, and cut off completely for individuals with $80,000 in adjusted gross income, heads of household with $120,000 and married couples with $160,000.

Stimulus Check: Why Your Plus

Some Americans are in line to get extra government cash if they didn’t receive as much as they were entitled to in the three stimulus checks authorized so far by Congress. But the IRS is cautioning that some people may not get as much money as they expect.

The tax agency is now sending out those “plus-up” payments to people who didn’t get their entire payments from the three rounds of federal stimulus checks, each of which have their own eligibility thresholds and payment amounts. The IRS said it is now sending out extra payments as it processes 2020 tax returns, which may indicate some people are owed more money.

Some of those plus-up payments will land in accounts today or will soon arrive in the mail via check or pre-paid debit card, the IRS said on Wednesday. It said about 25 million payments, worth $36 billion, were distributed with an official payment date of April 7, although only about 1 million of those represent “plus-up” payments.

The 2020 tax filing season, though, is giving people a second chance to claim stimulus money that they are owed but haven’t yet received. The IRS says there are two ways people can do this.

“You must file a 2020 tax return to claim a Recovery Rebate Credit even if you are otherwise not required to file a tax return,” the IRS said earlier this year.

Read Also: How To Apply For A Stimulus Check

Less Than Expected It Can Depend On Dependents

The IRS is now cautioning that some people may get smaller adjustments from the Recovery Rebate Credit than they might have expected. If you filled out Line 30 on Form 1040, the IRS will double-check your claim and if there are problems, you might not get what you expect, the agency said.

If that happens, the IRS said it will send a letter or notice explaining any change but it also warned that such a glitch could lead to a “slight delay in processing the return.”

Two potential pitfalls are tied to dependents, and the differing payment amounts and eligibility rules that applied to each round of stimulus, according to the IRS. For instance, the first round of stimulus checks provided $500 per eligible dependent, the second one $600 and the third handed out $1,400 per child.

In addition, the first two checks included an age cutoff for eligible dependents, excluding from payment teen dependents over the age of 17. The third check provided $1,400 for each dependent, regardless of age.

A problem will occur if people claimed an extra $500 or $600 from the first two checks on their tax return, but their child had already turned 17 on January 1, 2020. If that’s the case, the IRS says those children aren’t eligible for the first two stimulus checks, and the taxpayer is out of luck for getting that adjustment.

Who Doesn’t Qualify For A Stimulus Check

Third stimulus check update: Use our calculator to see if ...
  • People who don’t have valid identification numbers. Everybody involved must provide a valid Social Security number .

  • Certain dependents. If you are a tax dependent on someone elses tax return, the person who claims you as a tax dependent claims the stimulus check.

  • Nonresident aliens.

  • People who died before January 1, 2021.

Read Also: How To Get My Stimulus

Who Will Get A Supplemental Plus

Again, you’ll only get a supplemental “plus-up” payment if you received a third stimulus check based on your 2019 tax return or other information, but you would have gotten a larger check if the IRS based it on your 2020 return. So, who falls into this category? Of course, it depends on your specific circumstance. However, to give you a general idea, here are a few examples of hypothetical taxpayers who should get a plus-up payment.

You Had Less Income in 2020 Than in 2019: Kay was unemployed for much of 2020. As a result, her AGI dropped from $78,000 in 2019 to $40,000 in 2020. Kay received a $560 third stimulus check that was based on her 2019 return . Since her 2019 AGI was above the phase-out threshold for single filers , her payment was reduced. Kay later files her 2020 tax return, which is processed before August 16, 2021. Since Kay’s 2020 AGI is well below the applicable phase-out threshold, her third stimulus check would have been for $1,400 if it were based on her 2020 return. As a result, Kay will receive a $840 plus-up payment .

How Do I Find Out If I’m Owed More Stimulus

The best way to gauge eligibility for a plus-up payment is to do the math. A single person whose annual income fell from some amount above $75,000 in 2019 to some amount below $80,000 in 2020 may be due additional stimulus. For clarity, those whose income remained above $80,000 won’t be eligible for an additional payment because $80,000 is where the stimulus completely phases out. Likewise, those whose income remained below $75,000 won’t be eligible for an additional payment if they already received a third stimulus check for $1,400, because $1,400 is the maximum payment for an individual.

The numbers change with the addition of a new dependent. For every new dependent, the income threshold increases by $5,000, as seen in an earlier example. But the calculation remains essentially the same.

After comparing the amount due and the amount received, the next step is to check the IRS’s tracking tool ‘Get My Payment.’ Note any change in the payment information, particularly if another payment has been scheduled.

Don’t Miss: Will My Third Stimulus Check Be Garnished For Child Support

How Stimulus Payments Are Calculated

Most eligible Americans have already received their third stimulus check. The “base amount” is $1,400 . Plus, for each dependent in your family, the IRS adds on an extra $1,400. Unlike for previous stimulus payments, the age of the dependent is irrelevant.

However, third-round stimulus checks are then “phased out” for people with an adjusted gross income above a certain amount. If you filed your most recent tax return as a single filer, your payment is reduced if your AGI is over $75,000. It’s completely phased-out if your AGI is $80,000 or more. For head-of-household filers, the phase-out begins when AGI reaches $112,500 and payments are reduced to zero when AGI hits $120,000. Married couples filing a joint return will see their third stimulus check drop if their AGI exceeds $150,000 and completely disappear when AGI is $160,000 or more.

If for some reason you don’t get a plus-up payment, you’ll still get your money if a payment based on your 2020 tax return is higher than the payment you actually received but you’ll have to wait until next year to get it. In that case, you can claim the difference as a Recovery Rebate credit on your 2021 tax return, which you won’t file until 2022.

Who Is Qualified For An Additional Payment

Plus-up stimulus check payments: How they work and who is eligible

If you are a taxpayer in the USA whose income was lower in 2020 than it was in 2019, then you are eligible to receive what is being referred to as a plus-up payment.

This also applies to anyone who claimed an elderly or disabled dependent when they handed in their taxes in 2020, as well as elder or disabled relatives or college students who are under the care of individuals.

The deadline to submit your 2020 tax return and therefore become eligible to receive the plus-up payment is December 31, 2021, so it is better to act sooner rather than later.

In order to get the payment before the end of 2021, you should submit that tax return with some time to spare, so that it can be processed and so that the payment can be sent your way.

To check all the specifics in the eligibility process, visit the IRS website.

You May Like: How To Qualify For A Stimulus Check

Irs Plus Up Payment 2022 Tracker: Will You Receive More Payments

All you need to know

If you are eligible for plus up payments in the United States of America, then you should have already applied for yours as the deadline closed on December 31.

A new year means a new cycle of plus up payments has started and you need to keep a track of yours to ensure you can claim back as much of it as possible when the years draws to a close.

Who’s Eligible For Additional Checks

When the IRS acted quickly to send out the third round of stimulus checks, it relied on information from the most recent tax returns that were filed. For many people, that was their 2019 tax return. Now that more individuals and families have submitted their 2020 tax returns, they may be owed more money, as recently filed tax returns may reflect life changes.

The IRS is sending out additional checks to get people the money they are owed — what it calls “plus-up” payments. You may be wondering if you should expect another check from the IRS.

Here’s a look at who may be eligible for a “plus-up” stimulus check payment:

  • People with income changes: If the income listed on your 2020 tax return is different than what was listed on your 2019 tax return, you may be eligible for another check. For example, someone may have had a 2019 income that was too high to receive the most recent round of checks, but their 2020 income is lower and now qualifies.
  • People who had a child or added a dependant: If the child or dependant wasn’t listed on your 2019 tax return but now is listed on your 2020 tax return, you may be eligible for another check. Many families had a child after filing their 2019 tax returns.
  • If either of these situations applies to you, you’ll want to keep an eye out for your “plus-up” check. These payments are already starting to be sent out.

    Don’t Miss: Stimulus Check 2 Status Not Available

    Stimulus Payment: The Irs Could Owe You ‘plus

    If you got a smaller amount with your stimulus check than the IRS owes you, you might be due a plus-up payment. Here are the details.

    The IRS is now sending out “plus-up” payments as it processes 2020 taxes. Here’s what that means for your stimulus check total.

    You may have received your third stimulus check already, but the IRS may not be done sending you money. If the IRS underestimated the amount of money you received in that third check that you qualified for based on older tax information, it may send you a “plus-up” payment once the agency receives your 2020 tax forms.

    The IRS sent out 700,000 of these plus-up payments with last week’s batch, for $1.2 billion. And the IRS will continue to make these plus-up payments weekly. What can you expect if you didn’t file taxes in 2019 or haven’t filed your 2020 return yet? What if your circumstances have changed since you last filed, like if you earned less income in 2020 or you had a baby?

    Here’s how to watch out for another payment and what you can do to make sure you get all the stimulus money you’re eligible for. Also, here is what you need to know about how much money you could get from the expanded child tax credit, what is happening with student loan debt forgiveness and how to find out if your state owes you money. This story has been updated recently.

    Third Payments Differed From Previous Economic Impact Payments

    What is a

    The third payments differed from the earlier payments in several respects:

    • Income phaseout amounts changed. Payments were reduced for individuals with adjusted gross income of more than $75,000 . The reduced payments end at $80,000 for individuals and $160,000 for married filing jointly. People above these levels did not receive any payment.
    • Payment amounts are different. Most families received $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents received $1,400, while married filers with two dependents received $5,600.
    • Qualifying dependents expanded. Unlike the first two payments, the third payment was not restricted to children under 17. Eligible individuals received a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.

    You May Like: Will People Who Owe Child Support Get A Stimulus Check

    Claim Stimulus Money By Filing 2020 Taxes

    As of Wednesday, the IRS has sent an estimated 156 million third-round stimulus payments valued at $372 billion since the passing of the American Rescue Plan last month.

    Even though the IRS is sending out “plus-up” stimulus money on a weekly basis, the tax agency is still encouraging taxpayers to file their 2020 tax returns as soon as possible.

    Filing your 2020 taxes will give you a chance to claim stimulus money that you are owed but haven’t yet received, Holtzblatt told Grow in February. “When you file your 2020 taxes, the IRS will know how you might have been affected by the pandemic,” she said.

    On your 2020 tax return, you’ll have the option to claim stimulus aid in the form of a tax credit called the Recovery Rebate Credit.

    The IRS is also giving taxpayers an extra month to file: It delayed the tax deadline to May 17.

    More from Grow:

    What Is A Plus

    To begin, let me state unequivocally that this is not a fourth stimulus check. A plus-up stimulus check is a money you owe from the previous stimulus check.

    The stimulus payments have always been a paid-in-advance tax credit. To put it another way, the credit is based on the tax year in which it was granted.

    The first two stimulus payments were for the tax year 2020, while the third stimulus check was for the tax year 2021.

    Logan Murray, the owner of Pocket Project, a financial management planning firm in Tempe, Arizona, is a certified financial planner and tax preparer.

    Murray says that the IRS had to base the original payment on something substantial in order to make the advance payment, and the prior years tax return was the most logical choice.

    As a result, the Internal Revenue Service linked the stimulus payment to a taxpayers adjusted gross income on their tax filings.

    So, if you didnt get the correct amount in the previous stimulus payment, a plus-up payment is just money owed to you.

    Read Also: When Are We Getting Our Stimulus

    Plus Up Payment Calculator

    Cnet has designed a new stimulus calculator that considers the parameters mentioned above to calculate your expected third stimulus payout.

    To use the calculator, enter the information from your 2019 or 2020 tax return, depending on which youve already filed with the IRS.

    Your filing status, adjusted gross income , and the number of qualifying dependents you have claimed must all be provided. When you click the Calculate button, the estimated stimulus payment will appear on the screen.

    Be aware, however, that the phase-out mechanism for collecting payments is now in effect.

    For every $1,000 over the AGI threshold of $75,000 for an individual taxpayer, $112,500 for a head of household, and $150,000 for a married couple filing jointly, the credit payment would be reduced by $50.

    More articles

    Popular Articles