Run to the ATM: 7 Million ‘Plus-Up’ Stimulus Checks Continue to Roll Out
Ethen Kim Lieser
Stimulus Checks, Americas
The latest estimates suggest that as many as 10 million U.S. taxpayers likely overpaid on their unemployment taxes and would be eligible for the refunds.
Among the newest tenth batch of 1.8 million coronavirus stimulus checks, the Internal Revenue Service has confirmed that roughly half of them were dedicated to fast-tracking the so-called “plus-up” or supplemental payments.
To date, the IRS has sent out more than seven million of these payments to eligible Americans in 2021.
So, what are these plus-up payments and who qualifies to receive them? According to the agency, these checks are “for people who earlier in March received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.”
It continues: “These ‘plus-up’ payments could include a situation where a person’s income dropped in 2020 compared to 2019, or a person had a new child or dependent on their 2020 tax return, and other situations.”
Keep in mind that the IRS is also rushing to get tax refunds quickly out to Americans, so there have been plenty of reports of many U.S. taxpayers waiting on these funds. The best course of action is to stay patient, the agency says, as the payments could be sent out as part of future batches.
Do take note that another significant portion of the new checks targeted recent tax filers who previously did not have the necessary information—such as an address and bank account and routing numbers—on file at the IRS. According to the agency, “although payments are automatic for most people, the IRS continues to urge people who don’t normally file a tax return and haven’t received Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit.”
Be aware that the tax filing deadline has already passed, but these people can still apply for an extension and file by the October 15 tax-filing extension deadline.
Another potentially sizable check heading out to eligible Americans is the tax refunds from 2020 unemployment benefits. These checks were expected to start landing in bank accounts last month, but apparently many Americans have yet to see any form of payment. Perhaps more troubling is the fact that the IRS has provided few updates regarding the delayed funds.
Know that these payments are from the waiving of federal tax on up to $10,200 of unemployment benefits—or $20,400 for married couples filing jointly—that were collected by Americans last year.
According to the IRS, unemployment benefits are typically treated as income that is taxable.
The latest estimates suggest that as many as ten million U.S. taxpayers likely overpaid on their unemployment taxes and would be eligible for the refunds.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.
Image Reuters