The third stimulus check still owes some Americans money, which is what a plus-up stimulus check is. According to The Sun, you may be eligible for additional funds if your earnings decline significantly between 2019 and 2020.
Internal Revenue Service-Based Stimulus Payments On The AGI Reported By Taxpayers
In March 2021, when many people had not yet filed their 2020 tax returns, another round of stimulus checks was distributed, this time based on recipients’ 2019 tax returns. However, the pandemic had a significant impact on many people’s incomes between 2019 and 2020. Due to the outdated tax return, some may have received less money than they were entitled to.
According to US News, to make the advance payment, the IRS needed a solid foundation to build the initial cost, and the prior year’s tax return was the obvious choice. Because of this, the Internal Revenue Service based stimulus payments on the AGI reported by taxpayers. In other words, if recipients didn’t receive the correct amount in their last stimulus payment, they will receive a plus-up payment.
The Plus-Up Payment
Americans must file their 2020 tax return by the Dec. 31 deadline if they think they may be eligible. According to the IRS, the plus-up payments are typically processed within two weeks of submitting a 2020 tax return. Using the IRS tool, if recipients haven’t yet received your third stimulus payment, you can keep an eye on it.
Many people in the United States did not receive any stimulus payments or only received a small amount based on their 2019 income. Individuals can receive a maximum of $1,400 as their third stimulus payment. According to Forbes, the most up-to-date information that the IRS has is that the plus-up payments are being sent either by direct deposit to a bank account or by paper check to a direct mailing address if your bank account isn’t on file or it has failed the IRS’s test of validity.