If the IRS has used older information toso to for a , you may owe more money once the agency processes your 2020 tax return. That’s where extra payments come in – they’re something new to stimulus checks, and entirely due to the fact that the $ 1,400 payments are delivered mid-day.
But what can you expect if you do, or do you have (Unless you , you must submit it to the .) What if your since the last time you applied, such as when you or We have the details you need. Here are also , what we know about a and , and how of the This story was recently updated.
Why you may get an additional cost for your stimulus check
For taxpayers, stimulus checks are based on your, from your most recent tax return. There are several reasons why the IRS may owe you an additional payment for your third stimulus check. Note that if you owe money from the , you must claim it in your 2020 taxes as a The surcharge applies to the third check only. You can get an allowance if:
- The IRS calculated your third check based on 2019 taxes (or earlier), but you owe more money based on your 2020 taxes.
- You are a , but you have submitted new information in a tax form for 2020 to notify the IRS which the agency may not know about.
- Your first payment didn’t include all of your family members, such as one
Here’s how to find out if you qualify for an additional payment
The IRS automatically sends out overpayments for people it calculates should receive one. There are several ways to estimate whether you can expect a payment adjustment. We recommend that you deal with this proactively so that you don’t accidentally leave hundreds or thousands of dollars in case there is a problem receiving your extra money.
- Know Compare that to how much you actually received. If there is a big difference, you may owe some catching up.
- Check the to see if your payment information has changed. For example, you can see that another additional payment is scheduled for you. We’ve asked the IRS for clarification.
- If you have received an incentive payment electronically or a , regularly check your balance to see if a new payment has been received.
- If you’ve received your stimulus check in the mail and think you might owe a payment, you can use it to see when email is coming your way – including another stimulus check.
- Hold you from the IRS. If you need to claim an additional payment in the future, have this information ready.
When do the plus payments arrive? And for how long?
The IRS has said it sends overpayments on a weekly basis. The payment schedule will largely be tied to the rate at which the IRS can process tax returns for 2020. The IRS is currently accepting tax returns for 2020 via(If you’re expecting a tax refund, including of the , we especially recommend if you don’t have it yet, so you will
This has several implications. For example, if you earned more in 2020 than in 2019, but the IRS uses your return for 2019 and gives you more incentive money than you may qualify for.(more below). This assumes you have not filed your 2020 taxes. The IRS has between now and December 31
If you owe an additional payment, you shouldn’tor do anything else to claim it, other than file your 2020 tax return as soon as possible.
What should you do if your plus payment never arrives?
The IRS has until December 31, 2021 to finalize the payment of stimulus checks, including the catch-up payments for people who still owe stimulus money. But if the automatic adjustment never comes, what should you do?
If you know how much incentive money to expect,, and the amount the IRS tells you to expect is very different from the , you should watch out for payment adjustments.
If the extra money never arrives, you may have to file a claim, either later in 2021 (if the IRS opens an adjustment window) or possibly a year from now on your 2021 tax return.in front of from the first two rounds of incentive payments.
We asked the IRS for more information about how long it can take to send all of these additional payments and what to do if your additional payment never arrives. We will update this story as we get more information.
What if the IRS uses your 2019 tax return, but you made more money in 2020?
If you qualify for the full amountbased on your 2019 taxes, but does not qualify based on your 2020 taxes – assuming the IRS used your 2019 returns – you will not must refund the IRS for that discrepancy. Here are situations where you would
What if the IRS still hasn’t processed your taxes for 2019?
Due to pandemic-related delays, the IRS continues to work through a backlog of paper tax returns from 2019. At the end of January 2021, there were 6.7 million individual income tax returns for 2019 pending processing. at the desk. These processing delays can be the result of a number of things, including an error, missing information, or suspected identity theft or fraud. If the IRS contacts you for more information, you should get a letter. Solving the problem then depends on how quickly and accurately you get back to the desk.
However, the new bill states that ais based on your tax return for 2019 or 2020 – not your return for 2018. The bill states: “Based on the information available to the secretary, the advance amount will be determined with regard to that person based on that information.”
If your 2019 tax return is still being processed, it is best to do it nowas soon as possible, according to Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center. But if the delay in processing your 2019 return is due to an issue that also occurs with your 2020 return, your 2020 return could be delayed, which can delay your payment, Holtzblatt said.
What if you never get your third incentive payment, or if money is missing?
If you, but yours never comes along or Direct Express card (for example, if you or ), you probably need to take one more step to claim that money. This happened to millions of people during the in front of , including IRS errors, outdated bank information, or and to get the IRS their information.
As with the first and second check, you can probably claim some missing money from the third check that is due to you or your family members during tax season. The next year, 2022. However, the IRS has yet to say whether there will be an opportunityThe best thing to do now to make sure your third check arrives is to go to even if you don’t usually need to submit one.
Learn more about dos and don’ts, and what we know about one so far