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Home / Tips and Tricks / Should you repay your incentive payment to the IRS? Here’s when and how you would do that

Should you repay your incentive payment to the IRS? Here’s when and how you would do that



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That extra incentive money may not be yours to keep.

Sarah Tew / CNET

About 160 million Americans were eligible for one second stimulus control of maximum $ 600 per person, but still millions have not received their money. And some people who did received a check should not have be qualified and could soon find themselves in the dire situation of having to return it.

With the first round of incentive checks in 2020, the IRS admitted that in some cases they accidentally sent payments to ineligible people, and due to the deadline for sending payments, it’s possible the same thing may have happened again. If you’ve received a payment that you think you shouldn’t have, you may more than the specified income limit, for example – the IRS expects you to return the money. And depending on how you got the stimulus payment – by paper check, EIP card or direct deposit – there are specific ways to return it.

Here are the reasons why the IRS would want you to return a falsely paid stimulus check, and here’s how to do it. It’s also important to keep your stimulus check rights and these important details about it incentive controls and taxes. (And here’s what happens to a potential third stimulus check, why some want to “target the payment”, How much money that the new check could generate and when it can be approved.) This story is regularly updated.

There are several reasons why you should pay back your incentive payment

“Qualifications” refers to how the government determines who qualifies for a second incentive check. If you fall into one of these categories and received a stimulus check, it is probably by mistake:

  • You received a check for someone who passed away, but there is some nuance here (more below).
  • You do not have a social security number.
  • You are considered a “non-resident alien” without a spouse of a US citizen.
  • You are a non-citizen filing federal taxes.
  • Your adjusted gross income exceeds the limit; for example, $ 87,000 for a single taxpayer.
  • You are claimed as a dependent on someone else’s taxes.

There is more information on this who is not eligible for the $ 600 incentive check.


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Return a stimulus check that has been cashed or deposited

1. Use a personal check or money order and pay the check to the U.S. Treasury. You must also write the EIP 2020 and include the taxpayer identification number or Social Security number of the person whose name is on the check.

2. On a separate sheet of paper, let the IRS know why you are returning the check.

3. Mail the check to the correct IRS location – it depends what state you live in.

Return a paper payment that has not been collected or deposited

If any of the above applies to you, you may need to return your stimulus check. Here’s how to do this for each scenario, according to the IRS.

1. Write “VOID” in the approval section on the back of the check.

2. Do not bend the check or make paper clips.

3. On a separate sheet of paper, let the IRS know why you are returning the check.

4. Mail the check to the correct IRS location – it varies depending on the state you live in.

What if you get a stimulus check for someone who has passed away?

If you received a payment for someone who died in 2019 or earlier, the IRS says you must repay the full payment “unless it was sent to joint filers and one spouse is still alive.” If you are the living spouse, you must repay half of the payment, but no more than $ 1,200 in total.

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While you’re still waiting for your check to arrive, you can track it.

Sarah Tew / CNET

However, if the check was issued in both your name and the name of your deceased spouse (and therefore you cannot deposit the money), you must return the entire amount to the IRS. After the agency processes the returned payment, it will issue a new check with the correct amount for you.

What to do if you still haven’t received an incentive payment

If you are one of over 100 million people who were eligible for the second $ 600 stimulus check and you did not receive it, you may be able to claim it as a recovery credit discount even about your taxes if you don’t usually file taxes. Alternatively, you may need to starts an IRS payment track.

If you are not signed up for direct deposit through the IRS, this is a good time, as one the third stimulus check is on the table. To do this, you’ll need to add your bank details when you file your 2020 taxes this year. We also encourage you to file your taxes as early as possible this year, especially because of stimulus controls.

To keep up to date with the latest stimulus news, check out what happens now that the IRS has stopped sending second stimulus controls. If you have problems with stimulus control, do this instead of calling the IRS. This is also what is happening now with a potential third incentive payment.


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