It is important that taxpayers file their tax returns as soon as possible, in order to know if they are benefited.
Taxpayers have until May 17 to file their tax reports, as the IRS extended the date in the midst of distributing the third pandemic stimulus check.
In evaluating those personal reports, the authority will determine whether anyone should have an extra payment as an adjustment to income in 2020.
Last week the IRS confirmed President Joe Biden’s American Bailout Plan includes $2 billion for eligible individuals for additional money, deemed lost due to lack of employment or lower income.
This is more than a million payments known as a “plus-up,” it said. In some cases, a person may be eligible for a new or larger payment, but that will depend on their tax returns.
The money will be sent by the IRS by direct deposit or physical check, a few days after a person files his or her tax return and is endorsed as a beneficiary, so experts suggest filing as soon as possible.
There are people who already received the $1,400 in March, but that based on their 2019 tax report, so it is possible they will receive a similar amount or some lesser amount.
The “plus-up” payments will continue weekly, the IRS said, as the agency processes 2020 tax returns.
The assessment of the amount will also be per couple, when filing jointly, those individuals would have received $2,800 in March, but could get something extra. That will depend on their report.
What to do
It is important to file your tax return as soon as possible to receive the extra help, if you qualify.
Remember, if qualified, it is best to provide a bank account number, as IRS would make the direct deposit, otherwise it will take at least three weeks for the person to receive their check in the mail.
There are people, for example, who did not qualify for the third stimulus check because their 2019 tax report indicates they earned more than $80,000 annually per person or $160,000 per couple. The “plus-ups” could benefit them if their income was less in 2020.
Good news is that people who don’t claim the financial help this year will be able to do so on their 2021 tax report.
How payments are going
The IRS continues to process weekly third economic stimulus payments by check and debit card.
It is also sending the money to those who made adjustments to their address or bank account, who can track it through Get My Payment.
Among those sent recent help are Social Security beneficiaries who did not file a 2020 or 2019 tax return and did not use the nontaxpayer tool last year.
These are more than 19 million payments that include individuals under Social Security retirement, survivor or disability, according to the IRS.
Another nearly four million payments went to Supplemental Security Income and Railroad Retirement Board beneficiaries.