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New stimulus checks are unlikely to come, but the IRS is likely to ask some taxpayers to return some or all of the full stimulus checks they have received. There may be several reasons why the IRS may ask you to return a coronavirus stimulus check. Reasons can range from a change in your financial status to mistakes made by the IRS.
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Why you may need to return Coronavirus Stimulus Check
Since the start of the COVID-19 pandemic, Congress has approved three rounds of stimulus checks. Two rounds of stimulus checks of up to $ 1,200 and $ 600 were approved in 2020, while the third round of up to $ 1,400 was approved in 2021.
These stimulus checks were an advance credit and were based on individuals’ most recent tax returns. For example, checks in 2020 were sent based on taxpayers ’2019 or 2018 statements. In addition, the size of your check depended on your income in your tax return.
So after you file your most recent tax return and the IRS finds out that your income does not meet the threshold, the agency may ask you to return the extra amount you received.
Another reason the IRS may ask you to return a coronavirus stimulus check is if you received a check for someone who died. The IRS says the stimulus payment sent in 2020 for people who died in 2019 must be returned. In addition, if you filed a joint statement and your spouse died in 2019, you must return the stimulus amount for that spouse.
The IRS may also ask you to return the stimulus check if you are not a U.S. citizen or a non-resident alien, but by mistake received the check. You may also be asked to return the check if you inadvertently received an additional stimulus check.
What should you do if you receive a refund letter from the IRS?
If any of the above causes apply to you, the IRS may ask you to return your coronavirus stimulus check. The agency generally sends a letter describing what you need to do to return the stimulus money.
For example, if you have already redeemed the stimulus check amount, you must return the money through a check or money order. And if you still have the original stimulus check, write ‘VOID’ on the back of the check and send it back to the IRS.
If you do not agree with the IRS, you can also file a dispute. The fastest way to contact the agency is to send a letter to the IRS office in your area.
One point to note is that the IRS will contact you regarding an overpayment by sending a letter to your last known address. This means that if someone contacts you by phone, text message or email pretending to be from the IRS, then they are probably scammers. Always remember that the IRS never calls, text messages, or emails unless it is in response to a message you have already sent to the agency.
Updated March 17, 2022 at. 9:49
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