Great Britain

Third stimulus payment: Here’s why you were sent a check – and why you may be owed more cash

IF YOU have got your stimulus check by now, you may have wondered why you received a different amount than expected. 

This might be because the Internal Revenue Service (IRS) owes you a plus-up payment that is yet to be sent out to make up for your missing money or it could be because you didn’t qualify for that much money. 

The IRS uses a certain equation when calculating the amount of money you will receive. This formula starts with your gross income and laters adds on every dependent you claim, according to CNET.

The IRS may owe you more money in case they have calculated your check based on your 2019 tax year where you may have earned more income than you did in 2020. In this case, the IRS will send you a plus-up payment to make up for the missing amount. 

Plus-up payments are the missing stimulus amounts from the previous two checks. 

Those missed payments will be accessible by claiming the Recovery Rebate Credit when you submit your taxes, according to the Motley Fool.

The IRS is currently recalculating and sending “plus-up” payments as a credit on your taxes this year.

Having more dependents could also qualify you for a larger sum of money. Dependents typically qualify for $1,400 checks regardless of their ages.

But even if you have many dependents, there is still an income limit that you can’t exceed to qualify for a larger check. 

This means that the IRS starts calculating your stimulus by first evaluating your Adjusted Gross Income (AGI) before factoring in your dependents. 

If you exceeded the income limit — for single taxpayers it is less than $80,000 and less than $160,000 for a married couple filing jointly —  you are not eligible for a check regardless of the number of dependents you have.

A family with a large number of dependents and an AGI that is under the ultimate upper-income limit could qualify for a large partial payment, according to CNET.

But even if your AGI is under the maximum limit, the higher you go above the minimum income limit of $75,000 as a single taxpayer, for example, the less money you will receive.

On Wednesday, the IRS said in a statement that it will continue to send out stimulus checks and plus-up payments on a weekly basis.

Eligible Americans can expect their plus-up payments to arrive every week if they have filed their 2020 tax return by now.

The IRS began to disburse the fifth batch of relief payments on April 9 that included the $1,400 stimulus checks and 700,000 plus-up payments worth a total of $1.2billion.

Two million stimulus checks worth over $3.4billion went out per the fifth batch with 1.2 million direct deposit payments and 800,000 paper checks, according to the IRS. 

People began receiving their stimulus checks after President Joe Biden signed the Covid-19 relief bill into law on March 11.

Social Security Income (SSI) recipients began to receive their third stimulus checks earlier this month. Around four million checks were scheduled to be sent out with a total value exceeding 10billion.

The checks are set to be sent out to around 30million Social Security beneficiaries who are not required to file taxes.

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