CPA Daniel Geltrude explains when you should file right away and when you should take advantage of the later May 17 deadline.<\/p>\n
More than 700,000 Americans who already filed their 2020 tax returns will receive a supplemental stimulus check this week, the IRS said.<\/p>\n
The so-called "plus-up" payments will be sent to taxpayers who didn't receive as much money as they were entitled to in the third round of cash payments authorized by Congress last month. <\/p>\n
The $1,400 checks were calculated based on an individual's 2019 or 2020 tax return. But those returns didn't always accurately capture a person's financial situation; for instance, millions of Americans who lost their jobs, or saw their income reduced, last year as a result of the pandemic were actually qualified for a bigger check. That also includes individuals who had a child in 2020.<\/p>\n
$1,400 STIMULUS CHECKS CAN BE SEIZED BY PRIVATE DEBT COLLECTORS<\/u><\/strong><\/p>\n The agency estimated that it will send about $1.2 billion in additional payments. <\/p>\n If you already received your third stimulus check but are owed more based on your 2020 tax returns, the agency will automatically adjust the payment after you file your returns with a "plus-up" check.<\/p>\n The first wave of plus-up payments went out earlier this month; the IRS committed to delivering them on a rolling basis to everyone who is eligible as it continues to process 2020 returns. <\/p>\n HERE'S HOW THE $10,200 UNEMPLOYMENT TAX BREAK IN BIDEN'S COVID RELIEF PLAN WORKS<\/u><\/strong><\/p>\n Still, the IRS cautioned people last week that some payments may be worth less than expected, depending on several factors. The agency said it would send a letter explaining any discrepancies, but noted it could cause a "slight delay in processing the return." <\/p>\n One issue may arise from dependents and the differing rules on who's qualified for the money. <\/p>\n The first round of stimulus checks, for instance, provided $500 for dependents under the age of 17. The second check offered $600 for children under the age of 17, and the third check – the largest – gave $1,400 for all dependents, regardless of age. <\/p>\n But some Americans may mistakenly claim an extra $500 or $600 from the first two checks on their tax return, even though their child turned 17 on Jan. 1, 2020, and is not actually eligible for the money. <\/p>\n