Stimulus checks: IRS sends 2 million more payments in latest round
Almost 2 million more stimulus checks were paid out this week as part of the fifth series of payments, bringing the total number of payments to 159 million, according to the Internal Revenue Service.
Total payments sent amount to $ 376 billion, roughly 84% of the $ 450 billion earmarked for stimulus payments, the IRS said in a press release on Wednesday.
Almost 850,000 payments were sent to people who had not previously filed information with the IRS. More than 320,000 went to Veterans Affairs (VA) beneficiaries who received compensation and retirement benefits (C&P) but did not file their 2019 or 2020 taxes or used the IRS non-filer tool to make direct payments.
United States Tax Refund Check Close-up of the Statue of Liberty. Photo: Getty Creative
The fifth batch also contained more than 700,000 "plus-up" payments for people whose third stimulus check was calculated based on their 2019 tax return but who are now eligible for a higher payment. This is the case for people whose income was lower in 2020 or who added a baby or dependent to their return in 2020, thereby qualifying them for a higher payment.
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The bulk of the fifth batch of payments - 1.2 million - were deposited directly into Americans' bank accounts, while nearly 800,000 paper checks were sent.
This round costs $ 1,400 per eligible person plus a $ 1,400 bonus per dependent. Around 158.5 million households are expected to receive a payment under the new economic agreement, according to the White House.
Here's what you need to know about the third round of stimulus testing:
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. Around 158.5 million households are expected to receive a payment.
A single filer who earns up to $ 75,000 receives full payment, while those who earn up to $ 80,000 receive a discounted amount. Shared filers that earn up to $ 150,000 will receive the full $ 2,800, while those making up to $ 160,000 will receive a lesser amount. Previously, the exit thresholds for single applicants were USD 100,000 and for joint applicants in the house version it was USD 200,000.
Eligibility is based on your most recent tax return and your adjusted gross income. For the third round of checks, the IRS will use your 2019 or 2020 tax return to determine if you qualify for the direct payment.
Social Security Beneficiaries, Disability Insurance Beneficiaries, Supplementary Security Income Beneficiaries, Railroad Retirement Board Beneficiaries, and Veterans Service Providers are 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 checks will be treated as tax returns and will also receive payments.
In addition, Americans who qualify for the stimulus payment and have loved ones will receive an additional $ 1,400 per loved one. The bonus can be claimed for 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. Checks are made to all eligible taxpayers who were alive on January 1, 2021.
United States President Joe Biden prepares with Vice President Kamala Harris to sign the American rescue plan on March 11, 2021 in the Oval Office of the White House in Washington, DC. (Photo by MANDEL NGAN / AFP via Getty Images)
Who doesn't get a check?
Individuals without a Social Security number and non-resident aliens - those who are not US citizens or US nationals and do not have a green card or have failed the Essential Attendance Test - are not eligible for direct payment.
Married taxpayers who jointly file when 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.
How will 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 non-filer tool to provide your information as you did the first round. However, so far the IRS has not announced whether this tool will be available when this stimulus bill is passed.
The tool was intended for 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 federal tax return for 2019.
If you haven't provided 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 believe you are eligible or have received the wrong amount, you can claim it on your 2021 tax return.
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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 mail 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 stimulus checks - the payment of $ 1,200 under the CARES Act and the payments of $ 600 under the December stimulus deal of $ 900 billion. To find out the status of these previous rounds, you will need to create an account.
If your direct deposit payment is being delivered, the tool will indicate when the direct deposit is expected or when it was delivered along with the bank account it was received on.
If you get a "Payment Status Not Available" message, the IRS may not have processed your payment or you may not be eligible for a payment.
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 taxes for 2021.
If you had a child in 2020 and your return has been processed you should automatically receive the additional payment. If you have not yet submitted your 2020 taxes or 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, there is no provision in the law that requires a payment to be repaid for economic impact," the IRS website said of the first round of checks.
If your income was down in 2020 compared to 2019, you may be eligible for the payment, or a higher payment, if you have already filed your taxes and they have been processed by the IRS.
If your 2020 income is too much for your payment and you have not yet 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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