Stimulus Check Updates To Help You Get A Clear Picture And Hasten The Process

0
204
Stimulus Check
Stimulus Check

Even after catching up on much that you need to know about the stimulus check, you still have to get a few things straight. It could be anything from how much of the $1,400 maximum you finally receive, to how much you will get for your son who is in college.

The third stimulus check has different rules for different groups and adding to the confusion is the issue of dependents. There is also the issue of actually getting your check as many Americans are yet to get their stimulus payment. This includes federal beneficiaries like the SSDI and SSI and veterans and retired railroad workers. There have also been snags in the delivery process.

There are several reasons for the complication and confusion. Many important details of the $1.9T stimulus bill were redefined and new rules were set in their place. The process for calculating the eligibility for the stimulus check, and the exact amount they will receive of the maximum of $1,400, has also been redefined. The Child Tax Credit has been made more inclusive. Finally, as we are in the middle of the tax season, submitting your tax returns for this year could also change your fortunes, especially as the last date of filing has been extended till May 17.

Also, the inclusion of many groups of people who were excluded from previous stimulus payments has complicated the process further. Let’s walk through some of the major factors that could have affected how much you have received in your stimulus check. And how do you claim if you feel you have got less than you deserve.

Another 30 Million Checks Are On Their Way

The stimulus payment scorecard will tell you about the checks that the IRS has sent out in various ways, and who have received their third stimulus check. But 10s of millions still await their check as they have been dispatched through the US postal services, consisting of paper checks and pre-loaded debit cards. But you can track such payments accurately.

The direct deposit route adopted by the IRS to send the first round of nearly 100 million stimulus checks was stopped on March 24. So if you haven’t received your payment, you need to check up your mailbox. But there is another factor. Here is how you could unsnarl some of your knotty issues.

Use The ‘Get My Payment’ Tracker And Request A Payment Trace

If the ‘Get My Payment’ portal shows your payment details or a letter from the IRS confirms that a check way changed, you need to take steps. So if you do not receive your payment within the time frames it was stipulated to reach your bank or your mailbox, request a Payment Trace.

Many stimulus checks are yet to be dispatched and that includes many groups like the Social Security beneficiaries and recipients of veteran benefits. They are yet to get an exact date when they can expect their payment. An exact date has not been announced yet by the IRS, but the payments are expected to come in through Direct Express cards.

Stimulus Check
Stimulus Check

A lot could happen that could determine whether you get the right amount in your check, or even actually receive it. For instance, if you move without telling the postal services or the IRS, your stimulus check is not going to chase you to your new destination. And if you have not filed your current year’s return, the IRS might send a lesser amount than you deserve. So you could miss out if you have welcomed home a baby in 2020. But the IRS did not have that information in the 2019 return, the last they received.

The IRS has also not initiated a helpline for the third stimulus check. This was something they had done for the previous payments.

If You Are A Tax Filer, Ensure That You Have Filed Your Latest Returns

As the third stimulus check overlaps with the tax season, the IRS might have calculated your stimulus check based on the 2019 returns. So you could lose out if you have lost your job and had your income curtailed for other reasons. Also if a dependent was added, you could lose out on their check. So filing your current return before the May 17 deadline is one of your first tasks if you have not receive your stimulus check. Or you might end up waiting a whole year till you file your 2021 return in 2022.

Get Your Dependents List Right Along With Your Returns

If you are a non-filer, such as SSI or SSDI recipients, file a simple tax return for 2020. This will ensure that the IRS sends you your dependents’ check.

The definition of dependents has been greatly expanded for the stimulus checks. Previously it was only for children under 16. But college-going students and older dependents have all been included this time around. The first and second stimulus payment did not calculate for dependents over 17.

Calculate Your Expected Stimulus Check The Right Way

The third stimulus check is worth up to a maximum of $1,400. But the payments are more focused on the middle and lower-income groups of the society. It is based on the Adjusted Gross Income, and people with an AGI of $75,000 and below will receive the full amount of $1,400. It will increase rapidly and any individual earning above $80,000 will not be eligible for any amount. The corresponding figures are $112,500 for heads of household. For married couples filing jointly, the figures are $150,000 and $160,000. So get your figures right.

You might have earned above the maximum limit last year. But adverse circumstances might have reduced your income below the level but the information has not reached the IRS. So you could be missing out if you do not immediately file your returns based on your reduced income.

You Could have Been Included For The First Time In The List Of People Eligible For The Stimulus Check

Families that include members having different citizenship and immigration classification are defined as ‘mixed-status.’ People of mixed-status households were excluded from the previous round of stimulus payments.

But the rules are different now and you could be among the estimated 16.2 million people who are part of mixed-status families. Such families qualify if at least one member has a Social Security number.

Such families include where one spouse is either a US citizen or is a ‘lawful permanent resident’ with a Social Security number while the other spouse isn’t a citizen. Even a couple where neither of them has a Social Security number can qualify if their child was born in the United States.

Calculate Correctly For All Dependents And Get You Definition Of Dependent Right

Stimulus Check
Stimulus Check

The definition of dependents for purposes of calculating the third stimulus check has been redefined. They include college-going students, dependents of all ages with disabilities, and older dependents.

You Will Still Get To Claim Your Stimulus Payment At A Later Date

As the IRS has until the last day of 2021 to send the stimulus payments, they still have time to rectify any payment errors. So if you were expecting your stimulus check by direct deposit and haven’t received it, there were several possible reasons. Your payment might have gone to the wrong bank account, including temporary accounts used for filing tax preparers like TurboTax and Jackson Hewitt. Reach out to your bank and get details. Follow up with a representative.

If you filed your 2020 returns and still did not receive your stimulus check through direct deposit, the IRS might have not processed your return and entered the information before sending out your stimulus payment. In such a case, keep an eye on your mail and use the free tool of the US postal services to track your mail.

You need to inform both the IRS and the USPS if you change your mailing address. The IRS will have no way of know-how to route your payment. Let the USPS and the IRS know ASAP your new mailing address.

Here’s What You Do If You Received Part Of Your Stimulus Check

If you have rightly calculated the amount due to you but have received less than that in your stimulus check, there are steps that you could take. Use the stimulus calculator to calculate how much you are owed. The letter sent by the IRS contains the details of the check. Keep all the records with you. Be alert on the steps to take to file for any make-up payment. You will be able to claim the stimulus money due in 2022.