There looks to be some good news for American citizens before the new year, with some set to be entitled to up to $1,400 in the form of a surprise plus-up stimulus check. They will be sent before the end of 2020 but, in order to receive it, you must have registered in time.
The plus-up payments are additional stimulus checks that are sent out to people who were sent a stimulus check based on their 2019 tax return or information that was on the Social Security Administration’s system.
There has been a third payment automatically sent out by the IRS to people who did not hand in a return but received Social Security retirement, survivor or disability benefits, Railroad Retirement benefits, Supplemental Security Income or Veterans Affairs benefits.
Do I qualify for a plus-up payment?
If you are a taxpayer in the USA whose income was lower in 2020 than it was in 2019, then you are eligible to receive what is being referred to as a plus-up payment.
This also applies to anyone who claimed an elderly or disabled dependent when they handed in their taxes in 2020, as well as elder or disabled relatives or college students who are under the care of individuals.
The deadline to submit your 2020 tax return and therefore become eligible to receive the plus-up payment is December 31, 2021, so it is better to act sooner rather than later.
What else do I need to do?
Once you have filed your 2020 tax return, you can sit back and relax.
The IRS will then evaluate whether you are eligible to receive the plus-up payment, as they will look at the difference between your 2019 return and the 2020 version.
You will be able to track the status of your plus-up payment by checking the IRS’ ‘Get My Payment’ tool.
There have been roughly 500,000 plus-up payments sent out by direct deposit, with the rest being sent out via checks.
Will there be a check with the 2020 taxes?
Based on the current situation, the Build Better Act which has already been approved by the Senate, will be the key to establish if there’s enough money to send out stimulus checks based on the 2020 tax return.
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