A large number of Americans are receiving unexpected payments from the IRS in their bank accounts. A “plus-up” stimulus payment is a sum of money that recipients are entitled to, and they are getting it because they were eligible for it in the first place.
In the event that an individual recently received an IRS bank deposit, the first thing they need to know about this payment from the federal government is that it is not a fourth stimulus payment, according to MARCA.
The Plus-Up Payment
It has always been the case that stimulus payments are a pre-tax credit. The first two stimulus checks were released in 2020, and the third one was released in 2021. The IRS used an individual’s adjusted gross income (AGI) to determine the stimulus payment amount. If an individual did not receive the correct amount in the previous stimulus payment, an additional payment is simply money owed to that individual.
According to WGAL, another thing to keep in mind is that not everyone who received a stimulus check will receive a plus-up payment. Eligible recipients should keep an eye out for a plus-up check, and paper checks are being used for the payments currently being sent out. People would not receive an additional check unless they received the correct amount in the first stimulus payment.
A total of $6 billion in stimulus payments was distributed by the IRS back in June alone. As per CNET, people who had already filed their 2019 or 2020 tax returns received the money first because it was the most straightforward to verify. People may be eligible for additional funds from the IRS in other circumstances. This year’s tax returns might be eligible to receive an additional stimulus check or deposit if a person got married in 2020 and filed taxes for that year.
Stimulus checks are government checks sent to taxpayers in order to increase their purchasing power and stimulate the economy. The CARES Act of 2020 and the American Rescue Plan of 2021 included stimulus payments as part of their respective economic stimulus packages. This was the case with the stimulus payments included in those two programs, as per Investopedia.