lfu recently made a deposit on your IRS bank account, the first thing to know is that it’s not a fourth incentive payment from the federal government. It’s basically a “plus-up” payment.
The additional payment is not a fourth stimulus check, but money that you still owe from the third stimulus check.
“Incentive payments have always been a prepaid tax credit. Incentive checks one and two were (pre) tax year 2020, and stimulus three is tax year 2021,” said Logan Murray, owner of Pocket Project, a financial management planning firm.
The IRS linked the stimulus payment to that of a taxpayer adjusted gross income on their tax return.
Therefore, an additional payment is simply money that a person owes if he or she has not received the correct amount the last stimulus payment.
“Some taxpayers are entitled to additional payments when they file their 2020 tax returns. If their income in 2020 was lower than it was in 2019,” explains Cassandra Kirby, partner, chief operating officer, chief compliance officer and wealth advisor at Braun-Bostich. & Associates in Pittsburgh.
There are other scenarios where you could receive extra money from the tax authorities.
For example, if you got married in 2020 and filed your 2020 tax returns this year, there’s a chance you’ll get an additional incentive check or down payment.
Does everyone get an extra payment?
New. although the IRS has a Get My Payment tracking tool, which has helped determine the payment status of stimulus checks and deposits, it does not provide updates on stimulus plus payments.
The IRS website suggests, “Do not call the IRS. Our telephone assistants have no more information than is available on IRS.gov.”
If you have applied for tax deferral for 2020, your return must be processed no later than August 16 to receive an additional payment.
Finally, taxpayers who do not receive an additional payment or the third incentive check and are due can claim the money in 2022 as a clawback credit when filing a 2021 tax return.
Is there a fourth stimulus check?
Nobody knows. For now, families with children under 17 can expect a monthly child discount for 2021 from July, depending on income parameters.
Eligible Families receives $3,000 to $3,600 per child, depending on their age.
Those families will receive partial paychecks or down payments of $250 to $300 each month, with the rest of the money coming in 2022.