Third stimulus check: can you request the third payment if you did not make it for the previous one? – Community News
Stimulus Check

Third stimulus check: can you request the third payment if you did not make it for the previous one?

The direct incentive payments, first under the CARES Act and then approved again in December, are a prepaid tax refund on income tax 2020. Eligibility was based on total gross income (AGI) of tax returns in 2018 or 2019, which the IRS had available at the time the measures were passed and the payments should have been sent automatically.

Herein lies the crux, under the CARES Act certain groups were left out, mainly dependents of 17 years and older and families with a mixed status, but then included in the second round. These and other groups were entered in the second round with payments with retroactive effect from the first round. In addition, there were individuals who normally do not file tax returns, such as, but not limited to, students, low-income families and the homeless who were eligible but did not know they should apply.

The IRS has worked hard to make all payments to those who have not received their payment, but some will have to wait until they file their 2020 tax returns.

When will there be a third stimulus check?

There is no third stimulus check yet, or the official term Economic Impact Payment (EIP), which is coming soon. Biden’s US bailout this time called for a third direct payment for $1400 to supplement the $600 authorized December payments for a total of $2000. That plan must now work its way through Congress, where it will face a number of hurdles.

On the side of the democrats, a group of 55 House progressives calls on the White House to push for recurring monthly incentive payments instead of a one-time payment. They didn’t specify how much these checks would cost, but Ballpark bet is $2000 based on previous stimulus calls. They also ask that the payments go to the most needy, a condition also made by Senator Joe Manchin. so the money works to stimulate the economy and not in a bank account.

As for the GOP, they have expressed interest in the further outright payments, bringing the total to $2,000 with a third stimulus check. They would like to pass the measure on in a separate bill but that would take the leverage off Democrats to implement less favorable parts of Biden’s plan, such as raising the minimum wage to $15 an hour or funding for state and local governments. Republicans strongly oppose both measures.

Request a third stimulus check

When the measure passes Congress, the third stimulus payment — or any other stimulus — will most likely work as it has with previous payments and auto exit, when you have filed your tax return. With the 2020 tax return starting soon, you can get your paperwork ready right now with the help of a free file or any other online resource. That way, it goes straight to the IRS when the agency begins collecting and processing the 2020 tax returns.

As an added benefit, if you were eligible for the previous incentive payments and did not receive them or did not receive the full amount due, you can request a Recovery Rebate Credit. This is a tax credit on what you may owe on your 2020 income tax assessment, reduce what you may owe and if received, increase your tax refund. To verify that you have received a payment without your knowledge, you can visit the IRS Get My Payment webpage to verify.

Doing your taxes could be a little more rewarding this year.