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Wednesday, August 10, 2022

Stimulus Check 3: Everything You Need To Worry About

Recently, the IRS declared that they would be pushing for yet another round of stimulus checks to most of the eligible taxpayers within the week. The stimulus payments would be coming in the form of a check or through their debit card. In the event that you are still looking for your stimulus check of $1400 to come in, there are a few things that you should know. Chances are, they will be of help. 

Firstly, the IRS has decided to put in ‘plus-up’ payments along with the stimulus check that is coming in every week for those who qualify for this payment. Under the American Rescue Plan, the package for stimulus is going to include child tax credit along with a tax exemption on the unemployment benefits passed in 2020.

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Here are the initial things that you should need to know if you are about to report a problem in your stimulus check. Also, if you have dependents with you, it would be better for you to check into the child tax credit payments that have been instituted over the summer. 

Who Gets The Third Round Of Stimulus Check And Plus-up Payments?

The IRS has already given out more than $1.7 billion the current week to those who have been deemed eligible. This includes paper checks of $949 million, along with a direct deposit worth $809 million to the bank accounts. The batch also brings into account payments that have been made to individuals that the IRS didn’t know about, and who have recently claimed a tax return coupled with yet another segment of plus-up payments. 

To put it simply, plus-up payments depend on the tax form the IRS has been using when it tried to work out the match behind your third payment. This could lead to the IRS using a previous form instead of the filing information from 2020. So, when the IRS has possession of your tax return of 2020 and goes ahead to calculate your third payment, you could be due more money. 

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The IRS has maintained that they have been rigorously sending in these stimulus payments if they feel the need to maintain the balance sheets. But if you want to cross-check their references, you should first confirm how much you are supposed to get, and then start tracking your payment. 

Stimulus Check
Stimulus Check

How The IRS Tracking Tool Can Update You On The Status Of Your Stimulus Check

You should register for the IRS Get My Payment Tracker tool- which will allow you to find a daily update on your payment status. This app will also be able to alert you to any problems that might come up with your payment through a message. But, it won’t be able to give you any updates on plus-up payments from the IRS. 

What Is The IRS Payment Timeline For The Third Stimulus Check This Year? 

Most of the payments for the third stimulus check have already been sent out by the Department of the Treasury along with the IRS- which is strictly based on the information that the IRS has to determine payments. Just this week, the IRS sent out around 500,000 payments to those individuals that had submitted their tax returns. The stimulus law passed in March, nonetheless, gives the federal agencies time until the 31st of December, 2021 to push out those third checks. This will give the IRS time to wiggle out of plus-up payments by processing the tax returns of the previous year- while squaring up payments further. 

If you still haven’t received your stimulus check yet, then you might need to claim missing money through a tax return for the current year in the next year. This should be quite similar to the Rebate Credit for Recovery, which is also going to claim missing money from the first couple of checks. 

Is that IRS letter on the third payment important?

It is very important that you hold on to the letter signed by the President that will confirm the stimulus payment that you receive. The letter, sent by the IRS, also includes the amount you will receive, and the mode through which the IRS has already sent the money. Under Notice 1444C, this is proof that the IRS has already sent your payment out in the event that you don’t receive it. It could also be used to seek redressals in case you have received less than what you are eligible for. 

Why There Might Be A Delay With Your Stimulus Check

There are many reasons why your stimulus check could get delayed- but there is no reason to worry. 

  1. There was an error in calculation and you may have to claim an adjustment or simply wait for a plus-up payment.
  2. You are eligible for veterans’ benefits, or SSDI or SSI benefits, and the check hasn’t shown up yet.
  3. Your check is seemingly held up in the mail. 
  4. You are not eligible for a stimulus check for every single one of your dependents- which includes an older adult, or a new baby. 
  5. The IRS is beholden to you for the stimulus check based on the taxes you filed in 2019, and now you owe them money for your 2020 AGI.
  6. In order to claim the dependents’ benefit, you may have to file a tax return for 2020. 
  7. Your stimulus check got deposited in a bank account which is either closed or temporary. 
  8. You have relocated and the IRS has no information about your current mailing address. 
  9. Private debt collectors have deducted money from your payment. 
  10. You accidentally disposed of the mailed envelope.

What If You Got Less Money Than Expected In Your Stimulus Check?

Stimulus Checks
Stimulus Money

The IRS doesn’t really emphasize on communication how much payment it has calculated for your stimulus. Since there is a possibility that you probably won’t be able to find it in the online tracking tool of your agency, you may have to check for it in the confirmation letter that will come in with your mail. 

If you have issues with the payment that you have received, you need to start verifying your credentials again to see where you stand. Also, you must keep in mind that the IRS regularly sends on plus-up payments, which would make you eligible for more after you have filed the tax return for 2020. 

Could There Be A Fourth Stimulus Check?

Ever since the American Rescue Plan got passed in March, most of the lawmakers have already started rooting for yet another stimulus check. This would be made in the form of recurring payments, or at one go. There have already been quite a few Democrats who have sent letters to the President to urge him for another set of direct payments. 

There are quite a few complexities that you might need to go through with your stimulus check. But in the end, it is money that you rightfully deserve- so make sure you are aware of the mail that comes in. Also, don’t forget to triple-check the verifications. 

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