‘Plus-Up Payments’: The IRS Is Sending Out More Stimulus Checks

June 10, 2021 Topic: Stimulus Payment Blog Brand: The Reboot Tags: Stimulus PaymentsPlus-Up PaymentsEconomy

‘Plus-Up Payments’: The IRS Is Sending Out More Stimulus Checks

For those who are still waiting for the funds to arrive, the agency says the best course of action is to stay patient.

 

Here's What You Need to Remember: For those who have already filed their taxes, the IRS has already indicated that it will automatically adjust tax returns if individuals are found to qualify for a refund.

The latest tranche of coronavirus stimulus checks sent out by the Internal Revenue Service has boosted the total number of payments to one hundred sixty-seven million with a value of $391 billion.

 

And, once again, the newest batch included a sizeable number of the so-called “plus-up” or supplemental payments, many of which are still in transit to the final destinations. According to the IRS, the agency has already disbursed more than seven million of these top-off payments to eligible Americans over the past two months.

For those who are still waiting for the funds to arrive, the agency says the best course of action is to stay patient. There’s also a chance that the payments could be sent out as part of future batches in the coming weeks.

With many Americans still confused about whether they qualify for these checks, here is what the IRS says: These payments are “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 agency continues: “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.”

Also, be aware that another large portion of the new batch targeted recent tax filers who previously did not have the necessary information—such as an address and bank account and routing numbers—on file at the IRS.

“Although payments are automatic for most people, the IRS continues to urge people who don’t normally file a tax return and haven’t received Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit,” the IRS says.

Moreover, keep in mind that the agency announced this past weekend that more than 2.8 million refunds for 2020 unemployment benefits were sent out to eligible Americans.

For those who have already filed their taxes, the IRS has already indicated that it will automatically adjust tax returns if individuals are found to qualify for a refund.

“Because the change occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund,” the agency stated.

 

The most recent release added that “taxpayers will receive letters from the IRS, generally within thirty days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment.”

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. This article first appeared earlier this year.

Image: Reuters.