Surprise boosts in stimulus payments are being sent out before January, sending $1,400 cheques to individuals whose financial status changed between 2019 and 2020.
The extra payment is open to the following people:
- Some individuals with lower earnings in 2020 than in 2019.
- People who were too old, disabled, or had a newborn dependent on their taxes in 2020.
The IRS’s Get My Payment feature may be used to check the status of your payments, also known as “plus-up” payments, with the IRS. nIf you’re qualified for the payment, all you had to do was submit a tax return for 2020.
American Rescue Plan Gives IRS Until Dec. 31 to Send Out Stimulus Checks
Under the American Recovery and Reinvestment Act, the IRS has until Dec. 31 to deliver stimulus payments to taxpayers. Already, over 500,000 additional stimulus payments have been dispatched through direct deposit. But, according to The Sun, the bulk of the cash will be sent out in cheque form via mail.
The stimulus payment ceiling for single filers is $80,000 or more. However, according to Forbes, the stimulus payments are lower for adjusted gross incomes of over $75,000.
For married couples, the income limit is $160,000. The stimulus payments get smaller for those with adjusted gross incomes above $150,000. And for heads of households, the AGI cap is $120,000. As a result, payments are reduced to $112,500.
They’ll also get a bonus payment for each new dependent claimed on their 2020 tax return, provided their household income does not exceed the thresholds listed above.
Read More: U.S. Announces Diplomatic Boycott of 2022 Winter Olympics in Beijing
IRS Is Reportedly Working Through a Backlog
According to US News, in light of adjustments to their financial situations between 2019 and 2020, many people became eligible for the plus-up payments. Cassandra Kirby of Braun-Bostich & Associates in Pittsburgh offered the following example situation.
“Let’s assume a married couple with one child had adjusted gross income of $165,000 in 2019, and because their income was more than $160,000, they were not eligible for any of the third payment. However, in 2020, they have another kid, and your adjusted gross income decreases from $165,000 to $155,000.
In this case, they would be eligible for $2,800 in stimulus payments. In addition, people who married in 2020 and filed their taxes together for the first time below the income limit stated above are other possible plus-up payment possibilities.
Like the post office, the IRS is experiencing delays, so don’t get too worked up if you haven’t received your stimulus payment yet. On the other hand, if you’re entitled to a plus-up compensation, be patient; it will eventually arrive.