At least two groups of people would receive third $1,400 stimulus check next week; mailings include so-called “additional payments” from IRS to taxpayers who were processed an underpayment.
During the upcoming week of April 19, Americans who filed a tax return for the first time with the Internal Revenue Service (IRS) would be receiving third stimulus check payments of $1,400, as well as taxpayers to whom the agency sent a lower initial amount than they are entitled to based on an evaluation of 2019 tax information.
The IRS will continue to issue economic impact payments for the next several weeks, it reported on its website. Payments that are currently being processed will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment, but who recently filed a tax return, as well as to individuals who qualify for “additional payments.”
By the term “additional payments,” the IRS is referring, for example, to cases where it issued an underpayment because it based the calculation on an assessment on the 2019 return, but then received the 2020 return and had to send the difference in funds.
“This batch includes the first of ongoing supplemental payments for individuals who received payments based on their 2019 tax returns in early March, but are eligible for a new or larger payment based on their newly processed 2020 tax returns. These ‘additional’ payments could include a situation where a person’s income was reduced in 2020 compared to 2019, or a person had a new child or dependent on their 2020 tax return, and other situations,” the agency specified in an April 2 statement at the time it announced a fourth batch of payments.
Most of the payments arriving in the next few days will be sent through direct deposit.
Usually, direct deposit payments are available to recipients on Wednesday mornings, when Nacha and the banks officially release the money for the recipients’ use.
According to the IRS, the distribution process for the third $1,400 stimulus check under the “American Bailout Plan” passed in the U.S. Congress has been faster as more payments were issued electronically.
Agency data point to more than 95 percent of all Social Security beneficiaries having received their payments electronically during this round of payments, compared to 70 percent in the first round and 72 percent in the second round.
While payments are automatic for most individuals, the IRS again urged individuals who do not normally file a tax return and have not received economic impact payments to file a 2020 tax return to obtain all the benefits they are entitled to under the law, which include tax credits such as the 2020 Refund Recovery Credit, the Child Tax Credit and the Earned Income Tax Credit.
“Filing a 2020 tax return will also help the IRS determine whether someone is eligible for an early payment of the 2021 Child Tax Credit, which will begin to be issued this summer,” the IRS noted in another release this week.
Individuals must submit their tax information to the IRS even if they are not required to do so because they generate little or no income.
“People who do not normally file a tax return and do not receive federal benefits may qualify for these economic impact payments. This includes the homeless, the rural poor and others. For those eligible individuals who did not receive an economic impact payment in the first or second batch or received less than the full amount, they may be eligible for the 2020 Refund Recovery Credit, but will have to file a 2020 tax return. See the special section on IRS.gov: Claiming the 2020 Refund Recovery Credit if you are not required to file a tax return,” the IRS insisted.
So far, the entity has processed five massive batches of payments as a result of the passage of the third economic stimulus bill. The processing began last March 12 when the IRS initiated the first direct deposits.
The official direct deposit payment date for the most recent batch was this past Wednesday, April 14, and primarily impacted Veterans Affairs (VA) beneficiaries.
So far, the IRS has sent about 159 million payments, with a total value of more than $376 billion.