(CNN) –– The US Internal Revenue Service (IRS) began sending what it calls an “additional” payment to people who were owed more of a stimulus check than they initially received, due to their real income during 2020.
The original payments were based on 2018 or 2019 tax returns. That means people who had lower incomes in 2020 could be owed more money. Once they file their 2020 tax return, which shows a lower amount of earnings, the IRS will automatically send an additional payment to these individuals.
On the other hand, families who had children in 2020 could also be eligible for additional payments for dependents.
As of last week, the government had sent 130 million stimulus payments to those who qualify for the third round of checks. Precisely, the measure that Congress approved last March.
Who will receive a stimulus payment?
The new payments are worth up to $ 1,400 per person and are expected to reach 85% of households, according to the White House. Families will receive an additional $ 1,400 per dependent. So a couple with two children could receive up to $ 5,600. Unlike previous rounds, families will now receive the additional money for adult dependents 17 years and older.
The total amount will go to people earning less than $ 75,000 in adjusted gross income, heads of household (such as single parents) earning less than $ 112,500, and married couples earning less than $ 150,000. However, the payments are phased out as earnings increase.
This time, lawmakers reduced the extent of the payments. So not everyone who previously received a stimulus payment will get it again now. In fact, it excludes people who earn at least $ 80,000 a year in adjusted gross income, heads of households who earn at least $ 120,000, and married couples who earn at least $ 160,000, regardless of how many children they have.
What year are the income limits based on?
The new income thresholds will be based on a taxpayer’s most recent tax return. If a person had already filed the 2020 return by the time the payment is submitted and processed, the IRS will base eligibility on their 2020 adjusted gross income. Otherwise, it will be based on the 2019 return. Also on the information on file in an online portal created last year for those who do not usually file taxes.
Now, if your income in 2019 was less than in 2020, you will not have to return any money. But, if your income dropped in 2020, filing your taxes now, before payments are made, may mean you’ll get a bigger check.
Who is still waiting for stimulus payments?
Many low-income Social Security beneficiaries may still be waiting for the cash to arrive in their accounts.
Those who don’t have a 2019 or 2020 tax return on file – usually because their income is below the filing threshold – will automatically receive the money. However, the payments started pouring in to those people just this weekend. Many of those electronic payments are expected to hit accounts on April 7. The delay affects those who receive Social Security, Supplemental Security Income, or Railroad Retirement Board benefits.
People who receive Veterans Affairs pensions and do not have a recent tax return on file are also waiting for their stimulus payments. Last week, the IRS said it was continuing to review the data received for veteran beneficiaries. In that sense, he reported that these payments could be disbursed in mid-April.
Other households that are eligible for the new round of payments but did not file a 2020 or 2019 tax return and did not use the IRS online portal for non-filers last year may also be waiting for their stimulus payment. The agency encourages those who file a 2020 tax return as soon as possible to receive their payment.