The IRS has continued to stick to its weekly schedule of fresh stimulus checks. Here is some more information about the third round of payments and the extra plus-up payments. So if you are yet to get your third stimulus check, or feel that you deserve more than what you received, here are some facts that could help you.
The IRS has sent out 165 million payments in total under the American Rescue Plan signed by President Biden in March. The amount sent out is around $388 billion and that includes many plus-up payments. There are many other ways you could receive payments this year even as the administration tries to try additional measures to ease the effect of the economic downturn caused by the pandemic.
In the rush to send payments, the IRS has in many instances failed to send stimulus checks. There have also been issues with the correct amount. Here is how you can take up these issues with the authorities, and file for a payment trace.
The Narrative Behind The plus-up Stimulus Check
The current round of payments has also included plus-up payments. In the latest round this week, the IRS sent out nearly a million checks, including 460,000 plus-up payments worth $800 million. Half of the total payments dispatched this week were based on the fresh tax filings just before the extended deadline on May 17.
Why would the plus-up checks be needed in the first place? The IRS based its payments on the last tax returns filed. As many people had yet to file their taxes in March, when the bulk of the stimulus checks were sent out, many did not get the correct amount.
Fresh Calculations Based On The 2020 Tax Returns
Once the authorities got fresh info based on the 2020 tax returns, they began dispatching the extra catch-up payments.
You may have earned less in 2020 and that allows you to claim more payment than you initially received. The stimulus checks are linked to the Adjusted Gross Income to calculate the amount that you qualify for the third stimulus check.
Other factors that could give you more money is the birth of a child in 2020 or any increase in the number of dependents. Every dependent contributes up to $1,400 to the total stimulus check.
The IRS is sending these plus-up payments to even up the amount due to you. But you need to do your calculations based on the online calculators available. It will help you arrive at the exact amount due to you and compare it with the payments you have received.
If you feel that you are owed more, you can claim the same in the 2021 tax returns to be filed next year. The IRS might also open a window before the December 31 deadline to send out the stimulus payments.
Signing Up For The ‘Get My Payment’ Stimulus Tracker
You can get a daily update on when your third Economic Impact Payment is scheduled from the stimulus tracker. You can also know how and when the payment will be sent. The tracker is updated once at the end of each day.
The tracker doesn’t contain information on the first and second stimulus payments.
The tracker will alert you if there is any problem with your payment. But it doesn’t contain any information about the plus-up payments.
If your payment has been dispatched through the US postal service, you can use their online free tool to track your payment. It will be either a debit card or a paper check and take around 4 weeks to reach you.
The Timelines Through December
To expedite the process, the IRS has been sending out stimulus checks based on the information they have. So any fresh information could read to a follow-up stimulus check, referred to as the plus-up payment.
The Economic Impact Payment has an extended deadline of December 31, 2021. This allows the IRS the time to make fresh calculations based on the 2020 tax returns filed before the May 17 deadline. Some people have recently moved and have just given their latest mailing address, or who have updated their bank details for direct transfers. But the IRS stopped direct transfers for the third stimulus check after March 24.
Even if you do get your payment by the end of this year, you have the option of claiming any pending amount through a Recover Rebate Credit in the tax season next year.
Update On The Fourth Stimulus Check
Realizing that the third stimulus check would not last more than a couple of months for most Americans, many Democratic lawmakers began pressing for a fourth stimulus check.
Many people have also petitioned through online forums, with just one site collecting more than 2.2 million signatures in a joint petition.
They have urged President Biden to continue with the stimulus payments till the economy recovers. The President though is at present preoccupied with the infrastructure plans. If passed through Congress, it will be worth $2 trillion and will go a long way to rebuild a new economy.
Called the American Jobs Plan, it is an investment to rebuild the American infrastructure and cover roads, bridges, water systems, electric grid, internet infrastructure, education, and many other sectors.
Claiming Any Money Owed From The Previous Rounds of Stimulus Payments
If you are owed money from the first and second round of stimulus payments, the last date for claiming it was through the Recovery Rebate Credit with the 2020 tax returns. You can file for an extension if you have not filed by the May 17 extended deadline.
Reasons You May Have Missed Out On Your 3rd Stimulus Check
As millions of payments went out starting March, you might have missed out on your stimulus check or received less than you are owed. There are several reasons for that, the most obvious being calculation error.
There are various other reasons, including your check getting delayed in the mail.
You could also miss out if you have not updated any address change or not given the latest bank details to the IRS. Your check might be returned in such a case.
There is also the possibility of your payment being garnished by private debt collectors. You should contact your bank and explore the possibility of filing for a restraint.
Some Additional Rules And Exceptions For The Third Stimulus Check
There are some additional rules for dependents. The new American Rescue Plan has allocated $1,400 for dependents of any age. For the first time, adult dependents are also eligible.
Families with mixed status have qualified. Persons with valid Social Security numbers will be eligible for the third stimulus payment. But unlike the previous rounds, if your family has one member filing returns with an ITIN, your family will still qualify for the third stimulus check.
For the first time, you can receive your stimulus check even if you are past due on child support. And your check will not be garnished for this payment.