Stimulus checks: IRS sends 2.2 million more payments in latest round
The Internal Revenue Service has sent out more than 2.2 million stimulus checks in the past six weeks, according to the Treasury Department as the agency continues distributing the last remaining payments through the summer.
The IRS has now made more than 171 million payments totaling approximately $ 400 billion in relief funds under the third round of checks. About 89% of the $ 450 billion earmarked for economic controls has been used, the Treasury Department said in a press release on Wednesday.
Approximately 1.3 million payments were sent to people who had not previously filed information with the IRS but who recently filed a tax return.
Another 900,000 payments were “plus-up” payments for those who had their third economic check calculated on the basis of their 2019 tax return but are now entitled to a larger payment. This could be the case for individuals whose 2020 income was lower than their 2019 income or who added a baby or dependent on their 2020 tax return that qualifies them for a higher payment. The agency sent more than 9 million of these payments this year.
(Photo: Getty Creative)
The IRS will continue to distribute payments weekly. Future payments will be made to individuals who did not previously file their information with the IRS but who filed a statement along with those who qualify for pluralities.
This round costs $ 1,400 per eligible individual plus a $ 1,400 bonus per dependent. Around 158.5 million households are expected to receive the third payment under the new economic agreement, a number that does not include any plus payments, according to the White House.
Here's what else you need to know about the third round of stimulus checks.
Who gets a stimulus check?
The third round of direct payments includes $ 1,400 per eligible person plus a bonus of $ 1,400 per dependent. About 158.5 million households are expected to receive a payment.
United States President Joe Biden signs the American Rescue Plan, a package of economic relief efforts to respond to the effects of the coronavirus disease (COVID-19) pandemic, in the Oval Office of the White House in Washington, USA on March 11, 2021 . REUTERS / Tom Brenner
A single applicant who earns up to $ 75,000 will receive full payment, while those who earn up to $ 80,000 will receive a reduced amount. Joint applicants with incomes up to $ 150,000 will receive the full $ 2,800, while those earning up to $ 160,000 will receive a smaller amount. Previously, the house version phasing out thresholds were $ 100,000 for single filers and $ 200,000 for joint filers.
Eligibility is based on your last tax return and your adjusted gross income. For the third round of review, the IRS will use your 2019 or 2020 tax return to determine if you are eligible for the direct payment.
Social Security Beneficiaries, Disability Insurance Beneficiaries, Additional Security Income Beneficiaries, Railroad Retirement Board Beneficiaries, and Veterans Administration Beneficiaries are all eligible for payment even if they have not filed a 2019 or 2020 tax return.
Eligible taxpayers who used the IRS non-filer tool for the first round of screening will be treated as if they were making declarations and will also receive payments.
Additionally, Americans who qualify for the stimulus payment and have loved ones will receive an additional $ 1,400 per loved one. The bonus is available to college students, disabled adults, and other dependent adults. Previously, parents or legal guardians could only claim the bonus for dependent children under the age of 17.
The deceased can also receive payment. The checks go to all eligible taxpayers who were alive on January 1, 2021.
Who doesn't get a check?
Individuals without a Social Security number and non-resident foreigners - those who are not US citizens or US citizens and who do not have a green card or have failed the essential attendance test - are not eligible for direct payment.
Married taxpayers filing a joint application where one spouse has a Social Security number and the other does not receive a payment of $ 1,400 in addition to $ 1,400 for each child with a Social Security number.
Taxpayers with individual tax identification numbers (ITIN) are not entitled to payments.
House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Chuck Schumer demonstrate the American Rescue Plan during the enrollment ceremony following the passage of the $ 1.9 trillion Coronavirus Disease Act (COVID-19 ) by US President Joe Biden on Capitol Hill in Washington. USA, March 10, 2021. REUTERS / Erin Scott
How does the government send you the stimulus check?
The IRS uses the direct deposit information you provided from the taxes you filed for 2019 or 2020.
You may be able to use the IRS's non-filers tool to provide your information as you did in the first round. However, so far the IRS has not disclosed whether this tool will be available when this business stimulus bill is passed.
The tool was aimed at eligible U.S. citizens or permanent residents who had gross income less than $ 12,200 in 2019 ($ 24,400 for married couples) and who did not need to file a 2019 federal tax return.
If you don't have direct deposit information, or the account provided is now closed, the IRS will send you a check or prepaid debit card instead.
If you haven't received a payment and you think you were eligible, or you received the wrong amount, you can claim it on your 2021 tax return.
How can I track my payment?
Americans can now check the status of their third stimulus check using the IRS 'Get My Payment online tracking tool.
The tool enables Americans to meet the scheduled payment date for a direct deposit or a mailed payment. It's an online app that works on desktops, phones, and tablets and doesn't need to be downloaded from an app store. To use the tool, you need to provide basic information:
Social security number or individual tax number (ITIN)
Date of birth
The tracking tool no longer shows the status of the first or second round of economic recovery checks - the payment of $ 1,200 under the CARES Act and the payments of $ 600 under the December $ 900 billion economic agreement. In order to know the status of these previous rounds, you will need to create an account.
Read more: How to use your 2021 tax refund
If your payment is made by direct transfer, the tool will indicate when the direct transfer is expected to occur or when it was delivered along with the bank account it was received on.
If you receive a “Payment Status Not Available” message, the IRS may not have processed your payment or you may not be eligible for a payment.
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Do I get the dependent bonus for a newborn?
If you had a baby in 2021 and meet the remaining eligibility criteria, you can claim the additional $ 1,400 per child when you file your 2021 taxes.
If you had a child in 2020 and your return has been processed, you should receive the copayment automatically. If you have not yet submitted your 2020 taxes, or if they have not yet been processed by the IRS at the time of payment, you can claim the contingent bonus on your 2021 taxes
Do you have to repay the stimulus check?
No, you don't have to pay it back. It also doesn't reduce the refund you would otherwise get.
“No, the law does not require an economic impact payment to be repaid,” says the IRS website about the first round of inspection.
If your income was down in 2020 compared to 2019, you may now be eligible for the payment, or a higher payment if you have already filed your taxes and processed by the IRS.
If your payment is too high based on your 2020 income and you still have not filed your 2020 taxes, you will not be responsible for paying back the difference.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova
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