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Saturday, May 15, 2021

Stimulus Check Latest: The Plus-Up Payment Simplified And What More To Expect

Many people have received their plus-up payment in addition to the stimulus check. If you are among the lucky ones, know why you have received the money. And if you haven’t, check if you can expect one.

The authorities are sending out plus-up checks every week along with the regular stimulus checks. Plus-up checks are catch-up payments for money owed as part of the third stimulus check. How can you know if you deserve more than the $1,400 that you may have already received from the authorities? And can you check if any more payment is on its way even after you have received your stimulus check? Also, how do you get it and when?

Reason For A Plus-Up To Your Stimulus Check

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A major reason for the IRS to issue a plus-up amount is that the third stimulus check is being issued during the tax season. This could result in a discrepancy as the IRS could have worked out your stimulus check based on old information contained in previous tax returns. Once you filed your returns this year, the IRS might have discovered that they owed you additional stimulus payments. Other facts are contained also in a tax return, including the number of dependents. Your 2020 return may affect the stimulus payment that you will finally receive.

The plus-up check is only for the third stimulus payment. And the major reasons that you have got one or will be receiving one shortly, are several. The major ground for getting a stimulus check is your initial payment was calculated based on your 2019 returns. But your 2020 returns, filed after the third stimulus check was sent by the IRS, or after you received it, could contain information that made you eligible for more money.

You might also be a non-filer, but filed your tax returns this year, which revealed information of dependents that the IRS did not have in their records in the past. Also, you might have welcomed a baby in 2020, which was not calculated in the 2019 returns.

How To Be Certain That A Plus-Up Check Is Coming?

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Third Stimulus Check
Stimulus Check

The authorities are sending our plus-up checks based on information generated automatically from additional inputs. You need to be hands-on to be sure that you can expect one. You need to do your calculations based on the tracking tool on the IRS website, and check if there are any changes to your payment. you may also get information about another check that has been sent by the IRS.

If you received your stimulus payment by Direct Express card or direct deposit, regularly check your balance. And if you usually receive the stimulus check by mail, use the US postal service free tool to track it. And do not fail to keep the letter sent by the IRS. It will contain information that will later help you to claim your payment if you haven’t received it.

How Long Will The IRS Keep Dispatching The Plus-Up Payment?

The plus-up payments are going out weekly. If you have any amount due from your first and second stimulus checks, set up a direct deposit, if you do not already have one, with the IRS. The best way to do so would be to file your 2020 tax returns before the May 17 deadline.

If you have received more than you deserve based on your tax return for 2019, you don’t have to give back any additional amount to the IRS. But if your 2020 return shows that you will get more, the IRS will send it to you as a plus-up check. You need not file any amended return to get it. Just filing your latest tax returns will be enough.

What To Do If The Plus-Up check Does Not Come?

Stimulus Check
Stimulus Check

The time given by the IRS should be enough to send out all pending payments. They have until the last day of this year to dispatch every stimulus check and any plus-up payments. But what if there is no payment coming your way even though you deserve it?

If you use the stimulus calculator to calculate your dues, and if that amount is more than what the IRS has calculated in the letter they have sent to you, you have to initiate steps for the adjustments.

You can apply for the pending money through a claim. It could be later this year when the IRS is sure to open an adjustment window. You also have until you find the 2021 return next year. It is similar to the Recovery Rebate Credit filed for missing stimulus payments from the previous rounds. Watch out for more updates from the IRS.

Steps To Take If The IRS Failed To Process 2019 Tax Returns

The COVID – 19 pandemic has resulted in a backlog of paperwork for the IRS. They are still processing the 2019 tax returns for stimulus payments. There were still 6.7M tax returns under process in January 2021, as revealed by the agency.

Several issues have contributed to this delay including errors, missing or false information. The IRS has sent out letters if it needs more information from you. You should revert quickly to resolve these gaps in information, with the IRS.

So if your previous return (2019) is still under process, you should file your 2020 tax returns. But if the reason for the hold-up in processing is the same as one that could occur in 2020 also, you need to first rectify the error.

Steps To Take If Money Is Missing Or The Stimulus Check Never Arrives

There were several reasons why people never received their stimulus check in the first two rounds. They included errors by IRS authorities, incomplete or wrong banking, and personal information. A frequent reason is that many non-filers did not deem it necessary to update vital information like a change in mailing address or banking details.

If you miss out on any payments from the third stimulus check, you can claim the same in your tax returns next year. There could also be another opportunity in 2021 itself, given that there are more than 8 months to go before the December 31 deadline.

And before you file your tax return for 2020 ahead of the May 17 deadline, make sure to include every bit of information available to your including every dependent in your family, your correct mailing address and bank details, and details of your pending amount from the previous stimulus check in the form of the RRC.

Similar to the previous checks, claiming missing money from this check owed is going to be possible in the tax season of next year, that is 2022. However, the tax agency has not specified whether there is going to be a similar opportunity for claiming the money this year instead.

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