Whether you have your check or are still waiting, you may be wondering: Will yourbased on your 2019 or 2020 taxes? What if you , or have you (Unless you , you must submit it to the .) What if your since the last time you submitted an application , or
We have the details you need, including who is immediately eligible for a ‘plus-up’ payment from the IRS to correct any changes in incentive money you owe based on your, and what happens if the IRS owes you a catch-up fee down the line. Also here are , what we know about one until now and for the .) This story has been updated with new information.
How does the IRS handle the third stimulus check calculations when it comes to earnings for both 2019 and 2020?
Thestates that the IRS would determine your total third stimulus payment based on your from your most recent tax return – either , if you filed the latter in time this year for the IRS to determine your payment.
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.
And if the agency owes you more money based on taxes for 2020 than in 2019, then you may find yourself waiting for one of the following two things. Either the IRS will automatically send a catch-up or “plus-up” payment between now and December 31, 2021otherwise you will have to claim the money later.
The IRS is currently accepting tax returns for 2020 viaIf you are expecting a tax refund, includes hat of the , we especially recommend if you don’t have it yet, so you
This is what happens when the IRS owes you more incentive money
In many cases, the IRS will issue your check before it processes your 2020 tax return. If you filed your tax return and your circumstances changed in 2020 in a way that it wouldin this round – like when you , or if you or added one – you may owe a “plus-up” payment from the IRS.
For people who filed their taxes for 2020 is the IRSto people who use their in March based on their 2019 tax returns, but qualify for a larger payment based on their recently processed 2020 tax returns – basically making up for the difference in what you owe. These payments have already started for some, with a good portion of it updates issued around April 7. Plus-up payments will continue on a weekly basis, the IRS said.
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. The IRS should send it automatically once it processes your new return, likely against it or by paper check, if you do not have your account information on file.
What happens if my additional payment never arrives?
The IRS has until December 31, 2021 to complete the sending of stimulus check payments, including the catch-up payments for people who still owe stimulus money. But if the automatic adjustment never comes, what should you do?
The first is to make sure you know how much incentive money to expect,If the amount the IRS tells you to expect is very different from it , 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 – just like the current onein front of from the first two rounds of incentive payments.
We’ve contacted the IRS for more information on 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 the story as we get more information.
What about if the IRS uses my 2019 tax return, but I 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 return – you will not must refund the IRS for that discrepancy. Here are situations where you would
What to know if the IRS never processed your 2019 tax return
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, according to the agency. 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 2019 or 2020 tax return – not your 2018.
The bill says:
Based on the information available to the secretary, based on that information will determine the amount of the advance payment in respect of that person.
If your 2019 tax return is still being processed, the best thing to do now is to do soas 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 tax return is due to an issue that also occurs with your 2020 tax return, your 2020 tax return could be delayed, which can delay your payment, Holtzblatt said.
What if my third incentive payment never arrives, or if money is missing?
If you, but yours never comes along or Direct Express card (for example, if you or ), you probably have 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 likely 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 a possibilityThe best thing to do right 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