Americans can look forward to the next round of stimulus payments this week. More than $2 billion will be sent by the IRS to 1.1 million Americans. And if you are among the people who are expecting a stimulus check either as a first payment or a plus-up one, here is what you should know.
Since the American Rescue Plan was signed by President Biden, the total amount sent out is $386 billion. They were sent to 164 million individuals and families. The IRS has been sticking to a weekly schedule of payments. It is either through a direct deposit to your bank account, or a paper check or a prepaid debit card sent through the US postal service.
Getting A Plus-Up Stimulus Check
You qualify for a catch-up or ‘plus-up’ payment if the IRS determines that your initial stimulus check was less than the amount you deserve. You might have submitted your tax returns for 2020 that have given fresh details to the IRS to act upon. It could be a decrease in your income in 2020. That will enable you to collect more than the amount you received in your check.
Or you must have welcomed a baby in 2020, which the IRS got to know only through your fresh tax returns.
A Letter From President Biden
The payment is followed by a letter from the IRS signed by President Biden detailing the amount sent. You could also be in for your tax refunds. This notice was sent to each recipient’s mailing address after each of the 3 Economic Impact Payments. This Notice 1444-C was sent within 15 days of the payment. For an extra payment by the IRS, you will get another Notice 1444. You will receive the notification letter after you have received your third EIC. You should preserve this letter along with your tax papers for future reference.
People who haven’t received the physical copy of the letter can view it through their online account.
The Importance Of The Biden Letter
This letter from the IRS and signed by President Biden is a confirmation of your stimulus payment. It also contains the exact amount sent to you, which you cannot find in the IRS tracker. It is your only proof that the IRS has sent you a payment if in any case, you do not receive the amount, or received less.
Check Your Calculations For A Plus-Up Payment
The IRS is sending a plus-up payment if you have already received your third stimulus check based on your 2019 tax return or even information collected from the Railroad department, Veteran Affairs, or the Social Security Administration.
The IRS automatically calculates and sends you the stimulus payment based on the information they have in their records. If you haven’t given all your relevant details, you need to do so immediately before the May 17 deadline. The information includes your current income, the dependent members of your family, and the current bank account and mailing address.
Using The IRS Tracker For An Update On Your Stimulus Check
The Get My Payment tracker will give you the latest information on your payment status. You will get either one of the following three messages when you use the IRS tracker: Payment Status, Payment Status Not Available, and Need More Information.
The first message confirms that you will receive your payment on the date given. You will also know the mode of payment; whether through direct deposit, paper check, or prepaid cards. But you will not know the amount sent. It could also mean that you are eligible for payment but it hasn’t been processed and no dates are available.
The second message indicates that your payment has not been processed by the IRS yet or you are not eligible for a payment.
The third message indicates that there is insufficient information with the IRS to issue a stimulus check. It could also mean that your payment could not be delivered by the US postal service because your mailing address in the records is no longer valid.
The IRS Timelines Before The Third Stimulus Check Cutoff Date In December 2021
The IRS has sent out most of the third stimulus checks. But they have until the end of December 2021 to send out all the payments. This will give the IRS enough time to process the 2020 tax returns and send an additional catch-up payment if necessary.
You still have until you file your tax returns for 2021 to claim any pending amount from your third stimulus payment.
If you have any claim against the first and second stimulus payments, you can claim the same in the Recovery Rebate Credit filed along with your 2020 returns.
Claiming Any Pending Amount Based On The Letter Sent By The IRS
The letter mailed by the IRS is your only source of information on the amount sent. You will not get that in the IRS tracker. This confirmation letter is useful for further reference.
If the amount you received is less according to your calculations, first make sure you got your figures right. The IRS automatically calculates the amount based on the information you have updated in your records with the IRS. And the main reason for the difference could be you have not filed your tax returns and given all the information to the IRS.
The deadline for filing your 2020 tax returns is fast approaching on May 17. You should file your tax return even if you do not normally need to do so. That should give the IRS all the information necessary to square up your payment through a plus-up payment.
Reasons You Might Have Missed Out On Your Third Stimulus Check
The income threshold is the main restricting factor in getting the $1,400 third stimulus check. Individual taxpayers qualify for the full amount if they have an adjusted gross income (AGI) below $75,000. The check amount phases out rapidly and people with an AGI of $80,000 and above will get nothing.
The same goes for the head of families, with the corresponding figures being $112,500 and $120,000. For married couples filing jointly, the figures are $150,000 and $160,000.
As many factors are part of your final stimulus check, you might miss out on the payments altogether or the exact amount for any of the reasons listed below.
Your stimulus check might have been miscalculated due to a clerical error. You can claim an adjustment.
Many social service beneficiaries and rail and veteran affairs personnel have not received their stimulus checks as the IRS has not received the relevant document from the respective departments.
You could miss out on part of the stimulus check if you have not listed all your dependents in your tax returns. That includes a baby born into your household in 2020.
You have either not sent your latest mailing address to the IRS or your paper check or debit card is in the mail. You can track it with the free tool of the US Postal Service.
Not giving the correct bank details could also delay your stimulus payment. The account in the IRS records could be of a temporary or closed bank account.
There is also the possibility that your payment was garnished by debt collectors.
Some Additional Reasons You May Not Receive Your Stimulus Payment, Or Get The Wrong Figures
There are some further reasons your stimulus check might contain the wrong figures or not reach you completely. You need to check the IRS website for the relevant information on the issues.
People living outside of the US or non-US citizens. For the first time, the eligibility rules for Economic Impact Payments have been expanded to include many Americans who did not qualify for the first and second payments. For the first time families with members having different immigration and citizenship classification or ‘mixed-status families’ qualified for the Economic Impact Payment.
The dependent clause has become more inclusive for the third stimulus check. For the first time, each dependent of any age is eligible for the $1,400. This group includes college students, older adults, and people with certain disabilities.
