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Stimulus Check: What Is A Plus Up Payment

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

    While many Americans have already received their most recent stimulus check from the IRS, new “plus-up” payments are now going out. “What is a plus-up payment,” you might ask? Well, according to the IRS website, it is essentially a make-up amount for those citizens who did not receive the full amount they should have when initial third-round payments began going out in March.

    “These ‘plus-up’ payments could include a situation where a person’s income dropped in 2020 compared to 2019, or a person had a new child or dependent on their 2020 tax return, and other situations,” the IRS explained. “The payments announced today also include payments for people for whom the IRS previously did not have information to issue a payment but who recently filed a tax return and qualify for an Economic Impact Payment. Payments to this group — and the ‘plus-up’ payments noted above — will continue on a weekly basis going forward, as the IRS continues processing tax returns from 2020 and 2019.”

    The fourth batch of payments began processing on Friday, with an official payment date of April 7, according to the IRS.

    USA TODAY

    Who Will Get A Plus

    Some taxpayers will be entitled to plus-up payments when they file their 2020 tax return if their income in 2020 was lower than in 2019, allowing them to fall into the eligibility thresholds, says Cassandra Kirby, Partner, chief operating officer.

    Lets imagine a married couple with one child earned $165,000 in adjusted gross income in 2019, and they were not eligible for any share of the third payment since their income was over $160,000. They had another child in 2020, and their adjusted gross income fell from $165,000 to $155,000, she explains.

    They would fall under the $150,000 to $160,000 level with an additional dependent in this situation, she claims and would be eligible for $2,800 in stimulus money.

    How To Use Irs ‘get My Payment’

    The “Get My Payment” tool is available at www.irs.gov/coronavirus/get-my-payment. To use it, you’ll need to enter your full Social Security number or tax ID number, date of birth, street address and ZIP code.

    For those who are eligible, the tool will show a “Payment Status” of when the payment has been issued and the payment date for direct deposit or mail, according to the IRS’ frequently asked questions.

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    What If The Irs Uses Your 2019 Tax Return But You Earned More Money In 2020

    If you qualify for the full third stimulus payment based on your 2019 taxes but don’t qualify based on your 2020 taxes — assuming the IRS used your 2019 return — you won’t have to pay the IRS back for that discrepancy. Here are situations where you would need to return money to the IRS.

    If your circumstances changed in 2020, you may be owed more stimulus money from the IRS.

    Who Will Get A Supplemental Plus

    Who will get 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 .

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    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.

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    Could A Fourth Stimulus Check Be On The Horizon

    Another round of stimulus checks could go a long way to combatting poverty in the United States. A recent analysis from the Urban-Brookings Tax Policy Center found that a fourth stimulus check could lift more than 7 million people in the U.S. out of poverty.

    The payments arent just widely popular among Americans who are now in the second year of a deadly COVID-19 pandemic, but are also seen favorably by the president, who has claimed that economists left, right and center support ambitious relief spending to shorten the countrys recovery time.

    In early March, a group of 10 Democrats sent a letter to President Biden asking for recurring payments to be part of the administrations Build Back Better long-term economic plan.

    Experts say its unlikely that Americans will receive a fourth round of stimulus checks as the country becomes increasingly vaccinated and states turn to reopening their economies. That is not to say that they wont receive economic help from the Biden administration as people continue to struggle during the pandemic only that the aid may take a different form.

    Eligible Americans could also see regular payments in the form of the federal unemployment insurance, which has been extended until Sept. 6 at up to $300 per week under the American Rescue Plan.

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    What Is A Plus Up Payment

    Plus up payments are fourth stimulus checks being sent to some eligible recipients. Plus up payments are additional funds that certain people are owed because their third stimulus checks were sent based on their 2019 taxes and their circumstances changed in 2020, meaning they should have been sent more than they received.

    They might have had a drop in income which made them eligible for the full $1,400 or had a child and now have an additional dependent .

    Once they file their 2020 taxes and the IRS knows their current income, marital status, and number of dependents, they can send checks for the difference. Plus up payments are basically the IRS topping off people who received a third stimulus check that was too small.

    How Much Will The Payment Be

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

    The plus up payments range widely, depending on how much the person is owed. They may be an additional full $1,400 if the person has a new dependent or smaller amounts depending on what changed.

    For people whose income lowered in 2020 compared to 2019, the plus up payment will likely be a few hundred dollars. The first plus up payment checks were sent last week, and the IRS will continue distributing them alongside the third payments which still remain to be sent.

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    When Will These Payments Be Made

    The IRS has started making these catch-up/plus-up payments in their fifth batch of stimulus processing and estimates it will send out more than $1.2 billion in supplemental payments to 700,000 Americans by mid-April. It may take a week or two more to see payments for those getting paid via mailed checks or debit cards. These payment will continue in subsequent batches till the end of 2021.

    If you havent yet filed a tax return in 2021, the IRS will review and make these plus up stimulus payments in later batches, or you can claim and missing or under payments via your 2021 tax return that you file next year.

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    “Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for ‘plus-up’ payments,” it read.

    The IRS started sending the fifth batch of relief payments on April 9 that included the $1,400 stimulus checks and 700,000 plus-up payments worth a total of $1.2billion.

    Two million stimulus checks worth over $3.4billion went out per the fifth batch with 1.2 million direct deposit payments and 800,000 paper checks, according to the IRS.

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    Who Qualifies For Third Stimulus Check

    Americans who made up to $75,000 in 2020 will get the maximum $1,400 check. Couples who file taxes jointly and made up to $150,000 will get $2,800. There’s a $1,400 kicker for each dependent in the household.

    This batch includes payments for people who did not have information on file with the IRS, but have recently filed a tax return and now qualify.

    Social Security Stimulus Checks Status

    Everything you need to know about

    The IRS said a large set of payments for those on Social Security retirement, survivor or disability, Supplemental Security Income, and Railroad Retirement Board will start going out Friday. For those who are receiving the payments electronically, they should show up in accounts on April 7. The Get My Payment tool should be updated this weekend to track these payments, according to the IRS.

    The agency still does not have a specific date for when Veterans Affairs beneficiaries will get their stimulus payments, but is targeting mid-April. Those on VA benefits still cannot check the Get My Payment tool.

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    How Much Plus Up Payment Should You Get

    In this third stimulus wave, the IRS has changed most of the rules. First, the adjusted gross income , head of household, and joint couple filing requirements have been changed.

    The dependents qualification has also been updated to cover newborns born this year. Finally, plus-up payments are provided for those whose eligibility is based on 2019 taxes rather than 2020 taxes.

    When calculating how much of the third stimulus check you are entitled to, the IRS provided some helpful guidelines:

    If your AGI exceeds the upper-income limit, you will not be eligible for benefits, even if you have dependents.

    The age of dependents is no longer a factor. Newborn infants, college students, disabled adult children, and senior adult relatives identified as dependents are all eligible for $1,400.

    Because plus-up payments are based on your most recent tax returns, you need to file for the 2020 tax returns in order to receive the additional funds.

    Still Confused about How Much Plus-Up Payment You Should Get?

    People who have received their third stimulus check but are underpaid by the amount they qualify for are eligible for the plus-up payment.

    For instance, suppose you have lost your employment and your AGI has dropped below the amount you reported on your tax return. The IRS plus-up system gives you a separate payment for the extra money you qualify for.

    Qualified receivers should calculate how much they may receive correctly so that the IRS can make their new plus-up payments accurately.

    Why Is There A Plus

    According to The Washington Post, Congress added the measure to help the IRS, which was already dealing with a backlog of cases because of the pandemic year.

    • Aware of the backlog at the IRS, Congress gave the agency the ability during this stimulus relief round to circle back and essentially top off people who were shortchanged because their tax situation changed in 2020, The Washington Post reports.

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    Some Received A Lower

    Since , millions in the United States have received three stimulus checks that have been distributed by the Internal Revenue Service .

    Beginning early this year the IRS began distributing Plus up payments to those who received a stimulus check with a lower amount than what they were eligible to receive.

    This IRS was able to automatically send a third payment to people who didnt file a return but receive Social Security retirement, survivor or disability benefits , Railroad Retirement benefits, Supplemental Security Income or Veterans Affairs benefits.

    Additionally, many were sent to people who had not yet submitted a 2020 tax return were sent a corrected payment based on the updated information.

    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

    Plus-up stimulus check payments: How they work 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 .

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    Are You Eligible For A ‘plus

    by Natasha Gabrielle | Updated July 25, 2021 – First published on April 7, 2021

    Many or all of the products here are from our partners that pay us a commission. Its how we make money. But our editorial integrity ensures our experts opinions arent influenced by compensation. Terms may apply to offers listed on this page.

    Those who hadn’t yet filed their 2020 taxes when the third round of stimulus checks were sent out may be owed additional money if they experienced life changes.

    President Biden signed The American Rescue Plan into law on March 11. This authorized a third round of stimulus checks for many individuals and families in the United States. In fact, a third stimulus check may have already been deposited in your bank account. But are you eligible for more money to be sent your way?

    Now that many more Americans have filed their 2020 tax returns, the IRS is finding that they owe more money to some tax filers. That’s because the IRS used the information from the previous year’s returns for the payments, which may have resulted in lower check amounts for some people. Keep reading to see if you’re eligible for a “plus-up” stimulus check.

    How Can I Get My Missing Stimulus Check

    Individuals can check the Get My Payment tool on the IRS website to see the status of their stimulus or plus-up payments.

    But if youre still missing any of the stimulus checks sent out during the pandemic, the IRS suggests claiming the money on your tax return.

    Thanks to a delayed filing deadline of May 17, there is more time than there normally would be but the clock is ticking.

    Not only can filing ensure that you receive your full stimulus check amount, but it will also enable the government to pay you any other benefits owed such as the 2020 Recovery Rebate Credit, the Child Tax Credit and the Earned Income Tax Credit.

    Also Check: When Will We Get The New Stimulus Check

    Do I Qualify For A Plus

    If you are a taxpayer in the USA and your income was lower in 2020 than it was in 2019, then you are entitled to receive a plus-up payment.

    2021 was another year of disruption so if you earned less than you did in 2020 as a result, you could be entitled to more plus up payments at the end of this tax year.

    How To Get A Supplemental Stimulus Payment

    Nearly 700,000 plus

    If you owe a plus-up, the IRS will automatically compute how much you owe based on your 2020 tax return, so all you have to do is make sure your tax return is submitted.

    If you requested an extension to file your taxes, keep in mind that you must complete and process your 2020 return by Aug. 16 to receive a plus-up payment, according to Kiplinger.

    If youve been expecting a check but havent received it, its likely that the IRS hasnt processed it yet, as theyre still dealing with a significant backlog of 2019 tax returns.

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