The IRS began sending out the plus-up stimulus payments starting April 7. These follow-up payments were sent to people who had received an initial stimulus check based on previous returns and incomplete details. Here are factors that could get you a follow-up payment under the Economic Impact Payments.
The Economic Impact Payment clashed with the tax season and that led to an initial mix-up of the amount that people received initially.
The 2020 Tax Returns Could Trigger A Plus-Up Stimulus Check
If you had filed your tax returns for 2020 later, the third stimulus check was most likely based on the previous return for the tax year 2019. Most Americans suffered a drastic fall in income in 2020. Many lost their jobs and most people had their income severely curtailed.
This difference in the adjusted gross income will in most cases increase the amount that you would receive in your stimulus check, or even qualify you for the third check if your 2020 income dropped below the threshold level for the first time.
The Plus-up payments are based on additional details like the 2020 tax returns. Many Americans had seen a fall in income in 2020 due to the economic downturn triggered by the pandemic. The check is based on the adjusted gross income and any fall in income might increase the stimulus amount.
Other Changes That Prompted A Plus-Up Stimulus Check
In addition, any increase in the number of dependents would increase by up to $1,400 the final stimulus payment received by a family. The birth of a child in 2020 would also increase the amount of the check by up to $1,400. This additional information would be included in the 2020 tax returns.
Marriage may qualify a couple for an additional stimulus amount. For instance, if the combined income of a couple is below the threshold limit, they are eligible for $2,800. One of them might have been denied the stimulus check if they had filed individually and either of them had earnings above the threshold limit.
The Democrats had to compromise and lower the threshold income for qualifying for the stimulus check. For individuals, an adjusted gross income of $75,000 entitled you to the full check of $1,400. The amount went down for those earning between $75,000 and $80,000. Those earning above this threshold were not eligible for any stimulus payment. The corresponding figures for a married couple filing jointly are $150,000 and $160,000.
