The latest round of the stimulus checks worth a maximum of $1400 is still on the way for millions in America. This includes many of those who have already received some money. Read on to find out the latest details on the third stimulus check.
If you are one of those who are still waiting for the third stimulus check, patience can bear fruit. However, even if a good amount has already arrived as stimulus money, you could be receiving even more that is deservingly yours, soon. The US treasury and IRS has been mailing millions of stimulus checks as weekly adjustment payments called “plus-up”. This is for those whose checks have already arrived but are still owed more after new information in the tax return of 2020. Now that the deadline is 17th May, there is still a month left, these payments can take months to be completed.
In the meantime, the first deliveries of the stimulus check from the previous batch are still on the way via mail. Checks for eligible individuals who the IRS did not know enough about to pay before a recent tax return filing are also arriving. Veterans, SSI, and SSDI recipients may find themselves in this group.
Essential Information About The Plus-Up Stimulus Check
Basically, the plus-up amount is additional money that the Treasury and IRS are yet to pay you as a part of your check. The amount will come separately after the stimulus check has arrived. As such, it is extremely crucial that you know exactly how much you should get. You must also track the payment and not throw away the IRS letter at any time. No one wants you to not get your deserving amount over some clerical error.
As such, the plus-up amounts are arriving weekly. But it covers only this latest round, not the previous two rounds of stimulus checks. It is used to cover any difference in the amount that you should get that might have come up if the tax agency used the 2019 returns to calculate the amount while the 2020 one says you should get more. This could include a lower AGI for this year or you got another dependent.
If the stimulus check had arrived via direct deposit, then the same method should be expected for the plus-up amount. If your details are not on IRS files, then a paper stimulus check can come.
Till When Can A Stimulus Check Come?
The Treasury and IRS claim that most of the stimulus checks have been sent out already, not including any additional amounts. However, the stimulus law of March provides a deadline of 31st December to the agencies to complete the process. This gives time to process all the 2020 tax returns. The returns include those who are to get plus-up amounts, filed an extension for 2020 taxes and other groups like the homeless.
As such, if any part of the stimulus amount does not reach you by the end of the year, you might need to file a claim for the missing amount under your tax return for 2021, in April 2022. The process will be identical to that for claiming the Recovery Rebate Credit for this year’s taxes.
To date, approximately 135 million stimulus checks have been paid out via direct deposit, along with 19 million paper checks.
What If The Amount Received Is Less Than Deserved?
There can be various reasons as to why you can be owed additional stimulus money by the IRS, even after it has sent the third round. For instance, the 2019 returns may have been processed by the IRS before it got a hold of this year’s, and so a larger payment is your entitlement. For such cases, the IRS stated that it will evaluate your entitlement after the 2020 return is processed automatically. An additional payment will be sent to cover the difference without needing to act at all on your part. This also includes cases of welcoming a newborn or another dependent this year.
However, if the reason is a human error made by a clerk, or if the check never came or if it was garnished accidentally, then the tax agency may introduce a method to claim such missing money before the deadline. If not, the only option is to claim it next year in 2022 when you file the 2021 tax return.
The Need To Track Your Stimulus Check
Are you absolutely certain that the amount you received is the stimulus check you deserve? Unfortunately, the tax agency is not going to tell you, and finding it out yourself involves a slightly intricate process. Start by finding out approximately how much you should get, and absolutely track the stimulus check’s status.
The IRS’ Get My Payment tool is updated daily. The internet app displays the stimulus check’s status as well as when it is scheduled to be delivered. The USPS also has a free tool that can track your stimulus check if it is to come via mail.
The portal in the IRS also lets you know if there are any problems with the payment but the amount will not be given. SSDI and SSI beneficiaries can see their payment status. For VA recipients and non-filers, the stimulus check’s status is viewable since 11th April.
Possible Reasons Behind The Stimulus Check Being Held Back
It can be as simple as an error in calculation. SSDI and SSI beneficiaries have also not received their check yet. The snail mail can also be the reason behind the delay. New dependents may not get their deserving amounts included.
Non-filers need to file a tax return for 2020 before they can get the check. The check might also have been deposited in a bank account that no longer exists. An incorrect mailing address and private collectors of debt can also be reasons behind the check not arriving. In some cases, the IRS has sent a confirmation letter that the amount has been sent when it has not actually arrived.
This Year’s Tax Return Can Be The Difference
The IRS is going to calculate the stimulus check amount based on your most recent filing that it has on hand at the time of tabulating it. If the 2020 return has already been processed, the total should be based on 2020 one, and not the AGI for 2019. As such, the difference can also disqualify you for the third check leading to further complications.
On the other hand, the IRS will be sending out “plus-up” amounts if the difference is in your favor. For now, only in very special cases will you need to return any extra money to the tax agency.