Have you just wondered about a little more money in your bank account?
The Internal Revenue Service announced late Thursday that its third payment number includes the first of many “plus-up” stimulus payments.
The “plus-up” payments will continue weekly in the future, the IRS said as the IRS continues processing 2020 and 2019 tax returns. Yes, some 2019 tax returns also need to be processed.
In certain circumstances, an individual may be eligible for a new or larger economic impact payment based on their recently processed tax returns.
Perhaps a couple’s income has plummeted after a spouse lost a job during the pandemic last year, and they ended up making far less money than they reported on their 2019 income tax returns.
Or maybe a parent is now eligible for more money because the 2020 tax return includes a new or dependent child, which would increase the household’s stimulus payout.
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Such ongoing supplement or “markup” payments would apply to individuals who had received stimulus money earlier in March but whose initial payment was based on a 2019 tax return rather than the recently filed 2020 tax return.
A drastic drop in income in 2020 could result in some individuals qualifying for full or partial stimulus payment in this third program.
The income limit associated with the recent stimulus effort is much lower than that of the previous two stimulus programs.
The IRS noted that some people are not eligible for the third payment even if they received a stimulus payment last year or a stimulus payment in early 2021, based on the higher income limits associated with the first two programs.
The most recent Economic Impact Payment program, launched last month, will reduce an individual’s payout when an individual reaches an adjusted gross income of $ 75,000 or more. The person would not receive an incentive payment if their income is $ 80,000 or more.
The incentive payment for a married couple filing a joint return begins to decrease when the AGI reaches $ 150,000. The couple would not receive payment if their AGI is $ 160,000 or more.
According to the IRS, the U.S. Treasury Department, and the Bureau of the Fiscal Service, more than 130 million stimulus payments worth approximately $ 335 billion have been made to date under the latest economic stimulus plan.
The IRS noted that the most recent batch issued to individuals includes more than 2 million direct deposits worth more than $ 5 billion. Another 2 million checks, valued at nearly $ 5 billion, are now also being issued.
This third batch started on March 26th with the official payment date on March 31st.
Some people had not received a stimulus payment in the first two early batches because the IRS said they did not have enough information to issue a payment. But now these people are seeing stimulus money after recently filing a tax return that has more information stating that they now qualify for an economic impact payment.
“Payments to this group – and the aforementioned ‘plus-up’ payments – will continue weekly as the IRS continues processing 2020 and 2019 tax returns,” the IRS said.
As of Friday, the IRS announced that a large number of payments would go to Social Security and other federal beneficiaries who did not file a 2020 or 2019 tax return and did not use the non-filers tool in the past year.
“These payments go to Social Security Retirees, Survivors or the Disabled (SSDI), Additional Security Income (SSI) and beneficiaries of the Railroad Retirement Board (RRB),” said the IRS.
While payments to federal beneficiaries begin this weekend, most of those payments will be submitted electronically with an official payment date of April 7th.
Those receiving Veterans Affairs benefits will have to wait longer. Currently, the IRS estimates that economic impact payments could be issued to VA beneficiaries who do not file tax returns regularly by mid-April.
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