The stimulus payments for 2021 will soon end.
Moreover, as a result of Joe Biden’s American Rescue Plan, many Americans have received money in several ways.
Direct payments of $1,400 were provided to most Americans earlier this year.
The expanded federal Child Tax Credit still provides money to families with children.
Additionally, there will be families who will receive payments this month though may not have anticipated the money.
The following is what’s happening.
The IRS calls these payments “Plus-up” payments.
These stimulus payments were sent to some people based on the tax returns filed in 2019.
It’s possible that people’s situations have changed since then. Job loss or a job change may result in lower income. Children present in some families may have also caused lower income. For sure, the IRS will notice these changes when they file their 2020 taxes.
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Plus-up payments are used to cover the difference between what people got from their 2019 tax filing and what they owe for their 2020 tax filings.
Meanwhile, the Economic Impact Payment is available to people with a household income of $75,000 or less in the case of single filers or $150,000 or less in the case of married couples filing jointly.
A person can also get the money without having to file a tax return as the payments are wholly refundable.
The payments will be automatically sent to people and families. It typically takes two weeks for the money to be sent.
Taxpayers will receive the “Plus-up” payments up until December 31, 2021, the legislative deadline.
For more details and questions, visit the IRS’s website. There, you can see whether your Economic Impact Payment has been received.