Could Your $1,400 Stimulus Check Delay Your Tax Refund?
Tax season is here, and that means that millions of cash-strapped Americans can expect to be in line for much-needed refunds. But how long will they take?
Tax season is here, and that means that millions of cash-strapped Americans can expect to be in line for much-needed refunds.
But with nearly a hundred sixty million coronavirus stimulus checks being sent out by the Internal Revenue Service and U.S. Treasury under the American Rescue Plan, there is a high likelihood that the processing of tax returns and the associated refund deliveries will be delayed. Furthermore, adding to the dreaded wait is the new Tax Day deadline of May 17.
For those who’ve gotten a head start and already filed their tax returns, know that there are a couple of handy ways to track the refunds that they are entitled to. First, just enter the necessary personal information on the IRS tool Where’s My Refund, and that should take the taxpayer to a page that shows the status of the refund. If not, the individual may be asked to verify their personal information and try again.
Moreover, keep in mind that there is also a mobile app called IRS2Go that does a solid job in checking the status of refunds. The IRS updates the data in this tool roughly every twenty-four hours, so taxpayers can receive up-to-date information regarding their refund on a daily basis.
As for the $1,400 stimulus payment itself, know that the money cannot be garnished for unpaid federal debts or back taxes, but they can indeed be garnished for unpaid private debts—such as medical bills or credit card debts—if they are subject to a court order. Garnishment is a court order that allows for money to be removed from an individual’s bank account, and banks generally have to comply with a court’s demands.
Also, be aware that taxpayers could also be in line to take advantage of the new $1.9 trillion legislation that expands upon the child tax credit that currently allows families to claim a credit of up to $2,000 for children under the age of seventeen. That benefit now has been extended to lower-income families who otherwise wouldn’t receive such a credit. Families are now eligible to claim as much as $3,600 per year for a child under the age of six and up to $3,000 annually for children between six and seventeen.
For those who are recently unemployed, these individuals can claim $300 in additional weekly unemployment benefits, which include a brand-new tax break. Under the American Rescue Plan, these enhanced federal unemployment checks can be applied for till September 6, and the maximum amount of time you can collect is roughly a year.
Finally, take note that the fourth batch of stimulus checks has another surprise in store for many taxpayers—it is the first one that includes “plus-up” or supplemental payments for those who only received partial $1,400 payments on an earlier date.
“This batch includes the first of ongoing supplemental payments for people who earlier in March received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns,” the IRS said in a statement. “These ‘plus-up’ payments could include a situation where a person’s income dropped in 2020 compared to 2019, or a person had a new child or dependent on their 2020 tax return, and other situations.”
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.