The very first thing you should know if you recently received a deposit into your IRS bank account is that it is not a fourth stimulus payment from the federal government. In reality, it’s a “plus-up” payment.
The additional payment is money owed to you from the third stimulus check, not a fourth stimulus check.
“Payments under the stimulus have always been a prepaid tax credit. The first two stimulus checks were for the tax year 2020, and the third stimulus check is for the tax year 2021 “Logan Murray, the founder of Pocket Project, a financial management planning firm, echoed this sentiment.
The stimulus payment was linked to a taxpayer’s adjusted income on their tax returns, according to the IRS.
As a result, an additional payment is simply money owed to a person who did not receive the correct amount in the previous stimulus payment.
“If their income was lower in 2020 than it was in 2019, “Cassandra Kirby of Braun-Bostich & Associates in Pittsburgh is a partner, chief operating officer, chief compliance officer, and wealth advisor.
There are other circumstances in which the IRS may award you additional funds.
For instance, if you married in 2020 and decided to file your 2020 taxes this year, you may be eligible for an extra stimulus check or deposit.
Will Every Individuals Receive Additional Payment?
No. The IRS’s Get My Payment tracking tool has assisted in determining the payment status of stimulus checks and deposits, but it does not offer additional notifications on stimulus bonus payments.
According to the IRS website, “Do not contact the Internal Revenue Service. Our call center representatives have no access to information beyond what is available on IRS.gov.”
To receive an additional payment if you filed a 2020 tax extension, your return must be processed by August 16.
Finally, taxpayers who do not receive an additional payment or the third stimulus check but are due one can claim the funds as a recovery refund credit on their 2021 tax return in 2022.
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