STATEN ISLAND, N.Y. -- Did your finances change significantly between 2020 and 2021, or did you have a new child in 2020 who wasn’t claimed on your 2019 tax return? If one of these scenarios sounds familiar, you may be one of the many Americans who are due a plus-up Economic Impact Payment (EIP).
The Internal Revenue Service (IRS) said last week that another batch of stimulus checks will go out this week as part of the $1.9 trillion American Rescue Plan.
In this batch are what the IRS has dubbed “plus-up” payments, which are “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.”
WHO’S ELGIBILE?
After assessing tax information, the IRS will determine who gets the plus-up payments.
Reasons you may qualify include if you filed a 2020 tax return and are due a larger stimulus payment because your income dropped in 2020, according to the IRS.
Another reason you may be eligible for an additional EIP is if there is a new chid or dependent listed in the 2020 tax return who wasn’t on the 2019 return, said the IRS on its website. This can affect divorced families who alternate years of claiming their child dependents on their taxes.
OTHER STIMULUS CHECK NEWS
The IRS also said stimulus payments will be sent starting this week to people for whom the agency didn’t have information before.
To obtain your payment, the IRS said no action is necessary.
THE PAYMENT YOU’LL GET
The American Rescue Plan gives eligible Americans, including dependents, direct payments of $1,400. To qualify for the full amount, an individual must have an adjusted gross income of $75,000 or below. For individuals who are the head of household, the adjusted gross income must be $112,500 or below. If you’re a married couple filing jointly, total yearly earnings must be $150,000 or below to receive the full stimulus check.
This means a family of four who meets income requirements could receive $5,600.
Also, families will also benefit from major changes to the Child Tax Credit included in the American Rescue Plan. The credit has been expanded from $2,000 per child annually up to as much as $3,600 per dependent.
PARTIAL PAYMENTS FOR HIGH EARNERS
For individuals, stimulus checks decrease to zero if you make $80,000 or more per year. However, if you’re the head of household, the cutoff rises to $120,000. And for married couples filing jointly, payments won’t go to any couple making more than $160,000. Payments for dependent children decrease in the same way.
Financial experts have advised that if you missed the first two stimulus checks due to too high adjusted gross income for 2019, you may meet the income eligibility based on reduced pay circumstances during 2020.
TRACK YOUR PAYMENT
To be eligible for a payment, a person must have a Social Security number. If you are eligible for the third stimulus check, but have yet to receive payment, you can learn when the payment will hit your bank account by using the “Get My Payment” tool.
You can use the Get My Payment tool, available in English and Spanish, only on IRS.gov. It updates once per day, usually overnight.
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