There are several reasons that can result in an incomplete third stimulus check; but there are options before the IRS.
Some recipients of the third $1,400 stimulus check may receive an incomplete disbursement from the Internal Revenue Service (IRS).
There may be several reasons for this. One would be related to the tax return used to establish the amount of the payment. It is possible that the agency used the income reflected on the 2019 return and not the most recent 2020 return, which could lead to discrepancies and less money, not only per refund, but per stimulus check.
Another reason could be a clerical error that left out one of the dependents in the household. Under the “American Rescue Plan” passed in the federal Congress and signed by President Joe Biden, payments of $1,400 are established for each dependent in the family with no limit on the amount and regardless of the person’s age.
A third possibility is that part of the payment has been seized in error. In cases where there are private debts as part of civil lawsuits, the stimulus payment could be seized.
It should be noted that if you had a child in 2020, you can claim him or her as a dependent. Also, you can claim the dependent credit if your baby is born this year.
The expectation is that before December 31, the date set by law for the IRS to complete the third round distribution, the agency will provide individuals with tools to apply for payments due.
For example, for the first round, the agency enabled the “Non-filers” portal for eligible Americans who are not required to file low-income tax returns to submit their personal information in order to process payments.
As part of the second round, the office encouraged potential recipients who did not receive that full stimulus check or the previous one to claim the undisbursed money through the “Refund Recovery Credit” on this year’s tax return.
In a worst-case scenario, if the IRS does not offer alternatives by December 31, you will have to claim any credit due for stimulus checks on next year’s tax return.
Key question: What is your income level?
Another issue to consider is whether you are, in fact, eligible for the full $1,400 payment.
It is important to first rule out that you did not receive the full payment because you did not meet the income eligibility requirements. Under the new income level guidelines passed in the federal Congress, payments are further targeted and some Americans are left out of the payment population and others will receive a reduced check.
It is also important to keep in mind that this year, the IRS extended the tax filing deadline to May 17, which may delay the remittance of some payments if the agency decides to examine the most recent tax return or this tax season’s tax return.