The IRS is still sending out ‘plus-up’ stimulus checks, but you only from now until the end of next year to claim your money. If you think you could be eligible but haven’t yet submitted your 2020 tax return, do so before the deadline of December 31.
What Are Plus-Up Stimulus Payments and How Do They Work?
Even before the first stimulus payments were handed out, the amount you received was based on the IRS’s most recent tax information on file. Many Americans had not yet submitted their 2020 tax returns; therefore this was their 2019 tax return.
Based on their 2019 income, millions of Americans received partial—or no—stimulus funds. Individuals can receive up to $1,400 in third stimulus payments.
The following are the income thresholds
For single filers with an adjusted gross income (AGI) of more than $75,000, payments are reduced. Those earning more than $80,000 are not eligible for a payout.
The phaseout begins at an AGI of $150,000 for married couples filing jointly. Those earning more than $160,000 are not eligible for a payout.
Household heads suffer a drop of $112,500. Those earning more than $120,000 are not eligible for a payout.
However, the IRS is aware that several Americans’ salaries decreased in 2020 as a result of the pandemic. A huge bonus payment may be available for those who received the most recent stimulus payment based on their 2019 tax return, but later submitted their 2020 tax returns, which revealed a lower AGI.
This payout represents the difference between what they have been entitled to based on their 2020 income and what they initially received based on their 2019 income.
For example, if an individuals with no dependents earned $76,000 in 2019, their most recent stimulus payment would have been $1,120, because their AGI was higher than the $75,000 ceiling for the entire $1,400 stimulus payment.
If their AGI drops to $50,000 based on their 2020 filing, the IRS will send them a $280 ‘plus-up’ payment, allowing them to receive the maximum stimulus amount of $1,400.