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Friday, January 27, 2023

Billions In $1,400 Stimulus Checks: IRS Still Giving Out Regular And Plus-Up Checks

The stimulus checks helped Americans stay afloat as the pandemic raged around them. As the economy went for a tailspin, steps taken by the administration helped rein in the slide. But the picture continues to be grim. Unemployment figures are nearly double that of the pre-pandemic levels. Millions continue to remain jobless. But the IRS is sending billions under the Economic Impact Payments every week to people affected by the pandemic.

While many have received the full amount of the stimulus check, others have received part of it and are expecting the rest by way of a plus-up payment. But some did not receive payments for several reasons, though they have every right to receive one.

What Makes Up Your Stimulus Check?

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The amount that you have received, or will in the future, is calculated taking into account certain factors. The main issue is your income, calculated based on your AGI, the adjusted gross income. Then there are the number of members in your family, the issue of eligibility, and administrative reasons that could delay your check.

While there has been no indication of any further stimulus payments, at least in the immediate future, people and lawmakers are still pitching for one. For now, only the federal unemployment payments of $300 per week and the upcoming child tax credit in the middle of July seem the closest that Americans can expect as support from the administration.

The Latest Rounds Of Stimulus Payments

Stimulus Check
Stimulus Check

Many people received their stimulus payments in two parts. One of the leading reasons was the timings of the third stimulus check. The third stimulus check was issued bang in the middle of the tax season even as people scrambled to file their 2020 returns.

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To give the payments to maximum people immediately after the bill was signed in March 2021, the IRS sent out the initial batches of stimulus checks based on the 2019 tax returns. But many people earned less in 2020 and their income tax returns for that year led to their getting more thorough follow-up or plus-up payments.

Other factors that could get you another round of payment under the third stimulus check could be the birth of a baby in 2020. You get an additional $1,400 if you have welcomed a baby into your home last year. The list of dependents in your family might also have gone up thanks to changes in the laws.

Check Online For Imminent Payments

The IRS tool, Get My Payment will help you get a firm idea about your stimulus check. While you won’t know the amount, you will know the date your payment was dispatched or will be. You will be shown one of the three optional messages.

Payment Status indicates that your stimulus check is on schedule and you will get it either through your bank or the postal service. It could also mean that your payment is yet to be processed but you are eligible for a payment.

If the message shown is Payment Status Not Available, it means that your payment status has not been processed or you are not eligible for a stimulus check as per the IRS records.

The third probable message is Need More Information. It means your payment could not be processed due to inadequate information. This message gives you an opportunity to enter your banking information for a direct online payment. It could also mean that your stimulus check was returned by the postal service as they could not trace you.

Reasons That Could Hold Up Your Stimulus Check

Though many factors could prevent a stimulus check from reaching you, the major issues are calculation errors, postal delays, inadequate information with the IRS that is holding up your stimulus check. You might also not be on the records of the IRS if you are a non-filer. Filing the 2020 income tax returns even if your income doesn’t require you to file your returns will help you get your third stimulus check at the earliest.

Outdated information with the IRS could result in your stimulus check being returned from the bank or the postal service. Be sure to update your latest address both with the IRS and the US postal service every time you change your address.

You could also be the victim of mail fraud or your stimulus check was garnished by private debt recovery agents.

Getting Less Than The Expected Amount

There is every chance that the amount you expected, according to your calculations might not match the amount the IRS sent to you. The first thing you need to do is check if your calculations are correct. Next, check if there is a follow-up payment coming in from the IRS.

The IRS has sent a letter a couple of weeks after sending the stimulus check. Notice 1444-C is the only official document of your stimulus payment and you should keep it for further reference. It gives details of your payment and you should attach this letter for any future claims.

The IRS will open a window for claims before the December 31 deadline for sending out the third stimulus payment. You can use it for any claims. And there is always the income tax returns for 2021 next year which will present you an opportunity for any pending stimulus amount.

When Will The Final Batch Of Third Stimulus Check Be Sent?

Stimulus Check
Stimulus Check

The IRS has until the last day of 2021 to send out any pending stimulus payments. This gives enough room for the IRS to process all the 2020 income tax returns and send payments to those who have freshly filed their returns. The 2020 returns will also help the authorities to make fresh calculations and send follow-up payments if due.

Chances Of Further Stimulus Checks

Many influential lawmakers and experts have been demanding more stimulus payments as the economic downturn continues to affect millions of Americans. But the White House has been reticent on this issue. President Biden continues to be preoccupied with the infrastructure bill and it could be quite sometime before any decisions are taken on any direct stimulus payments.

The old-world brick and mortar economy has been the hardest hit and it has led to a widening disparity among communities. A TransUnion survey indicates that 38% of respondents continue to live below pre-pandemic standards. Around 20 million, or approximately 10% of the population continue to face food shortages, while 14% of renters are way behind on their rent. And rent owned will stay on as debt after the expiry of the moratorium on June 30 this year. We could witness a surge of eviction in the coming month. So millions are still expecting some sort of an additional stimulus check.

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