Stimulus Check Update: How Eligible Americans Can Claim Money In 2022
As the demand for a fourth stimulus check increases, there are some Americans who still havent received the third payment that was slated for 2021.
In March, millions of Americans received up to $1,400 in stimulus checks as a part of the $1.9 trillion American Rescue Plan. The IRS was tasked with sending out the payments and had until Dec. 31 to pay eligible Americans.
Now that the new year has arrived, there are still eligible Americans who havent been paid their stimulus check from the government. However, those eligible can still receive the payment by claiming the money on their 2021 tax return.
If youre eligible, youll need to file a 2021 tax return, even if you dont usually file a tax return, the IRS said in a statement.
Under the Recovery Rebate Credit, a person can list if they received stimulus money and those who were not paid can note how much their payment should have been.
Since tax returns from 2020 or 2019 were used to determine eligibility for stimulus checks in 2021, people who experienced a decrease in income could be owed more money.
Those who had babies in 2021 can also use the Recovery Rebate Credit Worksheet to claim their childs stimulus check and may also be eligible to receive the full tax credit if they havent been receiving the monthly advance payments that started in July.
News of eligible Americans without stimulus checks comes amid reports Boston Marathon bomber Dzhokhar Tsarnaev received a $1,400 payment.
Filing A Payment Trace To Find Missing Stimulus Money
You can request an IRS payment trace if you received the confirmation letter from the IRS that your payment was sent , or if the Get My Payment tool shows that your payment was issued but you have not received it within certain time frames. This is the case for all three checks. Check out our guide to requesting an IRS Payment Trace here.
How Will I Get The Stimulus Check Payment
There are three ways you can receive the stimulus payments: direct deposit, check, or prepaid card.
If the IRS has your bank account information from your 2018, 2019, or 2020 returns a direct deposit will be sent to that account. If you do not have direct deposit set up with the IRS, you will receive a check or prepaid card. On May 18, 2020, the U.S. Department of Treasury issued a press release stating it has begun to send nearly 4 million stimulus payments by prepaid card instead of paper checks. You can access the full press release issued by the treasury by clicking here.
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What Is A Plus
A plus-up supplemental payment is a new or larger payment you may be eligible to get if you recently submitted your 2020 tax return and your income or number of dependents changed.
For example, if you received a partial third stimulus payment based on your 2019 income, but your income declined in 2020, you may receive another payment to make up the difference between the two amounts. Your original third stimulus payment and your plus-up payment together will equal the amount youre eligible to receive based on your 2020 tax return.
On April 1, the IRS announced that new payment batches include supplemental payments for these people. As of late June 9, more than 8 million plus-up payments have been issued.
What Ssi Ssdi And Veteran Beneficiaries Need To Know
The IRS began sending out stimulus checks for Social Security beneficiaries, including those who are part of the SSI and SSDI programs, on April 7. It began sending payments to people who receive veteran benefits and don’t typically file taxes on April 14. If you’re part of one of these groups and haven’t gotten your check yet, it may be on the way soon.
The Social Security Administration has also advised people not to contact the SSA about problems. It’s possible you may need to use one of the strategies above, depending on what the trouble is.
Also Check: What Days Are Stimulus Checks Deposited
Advance Child Tax Credit
The enhanced child tax credit has not been extended into 2022, but the 2021 payments will still affect your tax bill.
The credit was increased from up to $2,000 to as much as $3,000 to $3,600 per child in 2021. Many families received half of the larger payment throughout 2021 in monthly installments worth as much as $250 to $300 per child. Everyone will receive the other half of it when they file their 2021 tax returns.
Overall, many families received much more money. But because half of the payment was made in advance for the first time, families may receive a smaller tax refund than they are used to.
A family with a 10-year-old that qualified for the full $3,000, for example, could have received $1,500 throughout 2021. That means they can claim the additional $1,500 on their tax return less than the $2,000 they typically claim. With more children, the difference grows even larger.
Additionally, the CTC was based on 2020 income information. If a parent or household’s income was much different in 2021, they could have to repay some of the credit.
You Were Supposed To Get A Paper Check Or Debit Card
Americans in line for direct deposits almost surely received their payments before those who were slated to get debit cards or good ol paper checks, which can take weeks to reach their intended recipients.
Not sure how your payment was distributed? You can use the IRS “Get My Payment” tool to see how your money was to be delivered and whether it has been sent.
If the tax people had you down for a check or debit card, you’d better hope you didn’t accidentally throw away your envelope from the IRS. When the first $1,200 stimulus checks went out in 2020, some recipients mistook their mailed checks or debit cards for junk mail and tossed them.
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Your Stimulus Check Was Seized By A Debt Collector
Its possible that a debt collector seized your stimulus check. How is that possible? Under the new stimulus package the $1.9 trillion Americans Rescue Plan of 2021 debt collectors can take your stimulus check if you owe past-due debt. This is different than the first and second stimulus checks, which didnt allow debt collectors to garnish wages. Why? Congress passed the new stimulus package under budget reconciliation, a legislative tool that Congress can use to pass legislation with a simply majority vote rather than a 60-vote threshold. Budget reconciliation limited the ability of Congress to include a specific prohibition against the seizure of stimulus checks. After President Joe Biden signed the stimulus package into law, several members of Congress, including Sen. Ron Wyden , proposed legislation to prevent debt collectors from taking stimulus checks. Relief payments are intended for struggling families, not predatory private debt collectors, Wyden said. Our legislation would ensure help gets to the folks who need it to pay rent and buy groceries.
I Think I Got Paid Too Much Will I Have To Return My Stimulus Payment
During the first and second rounds of payment, if your stimulus amount was too much based on your income, you did not have to pay back the difference. That is likely to be the case for this round of payments as well.
If you received a payment in errorfor instance, for someone who died in 2020the IRS offers instructions for returning a payment.
Read Also: What Does The Stimulus Debit Card Look Like
Your Bank May Be Holding Up The Money
In at least some cases, the IRS apparently “future dated” the payments, similar to the way a consumer might post-date a check. And, your bank may not have made your stimulus check money available to you until the tax agency’s official payment date.
That was the case for customers of JPMorgan Chase and Wells Fargo, who didn’t receive the cash in their accounts until days after it was distributed. The banks said they were observing the IRS “effective date” for the payments, but some people threatened to close their accounts in protest.
The omicron COVID surge has renewed speculation over whether there will be a fourth stimulus check, but Washington has shown little interest. So if you receive a delayed $1,400 third payment, use it wisely maybe by putting it to work with one of today’s popular investing apps.
Payment Issued But Lost Stolen Destroyed Or Not Received
If you received your payment by check and it was lost, stolen or destroyed, you should request a payment trace so the IRS can determine if your payment was cashed. See How do I request a payment trace to track my first or second Economic Impact Payments?
If a trace is initiated and the IRS determines that the check wasnt cashed, the IRS will credit your account for that payment but the IRS cannot reissue your payment. Instead, you will need to claim the 2020 Recovery Rebate Credit on your 2020 tax return if eligible.
Note: If you are filing your 2020 tax return before your trace is complete, do not include the payment amount on line 16 or 19 of the Recovery Rebate Credit Worksheet. If you do, you may receive a notice saying your 2020 Recovery Rebate Credit was changed, but an adjustment will be made after the trace is complete and it is determined your payment has not been cashed. You will not need to take any additional action to receive the credit.
If you do not request a trace on your payment, you may receive an error when claiming the 2020 Recovery Rebate Credit on your 2020 tax return. Since the payment was issued to you, you may not be eligible for any credit.
If you received Notice 1444 in the mail and have not received your payment as mentioned in the notice, see How do I request a payment trace to track my first or second Economic Impact Payments?
How we process your claim
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My Stimulus Payment Was Too High
Some individuals whose income increased too much in 2019 were not eligible for a full stimulus payment, but they got one anyway since the IRS based the payment on their 2018 taxes. Those individuals will not have to pay back the payment.
In other cases, families were paid an extra $500 or $600 for children who were 17 or older . This could happen if the IRS took the number of children who qualified for the child tax credit in 2018 without updating children’s ages for 2019. But in other cases, it looks like the IRS took the number of dependents from a family’s 2018 tax return, without regard to their age. The IRS has said that those who received such overpayments will not have to pay them back.
Can My Payment Be Garnished
Under Executive Order 20-50, during the peacetime emergency stimulus payments are exempt from all claims by creditors, except those related to domestic support obligations . This means that stimulus payments cannot be garnished, seized or set off by creditorsâexcept for claims for domestic support obligationsâfor the duration of the peacetime emergency. Executive Order 20-50 also stops all new consumer-debt garnishments during the peacetime emergency.
If a bank, creditor or debt collector takes your stimulus payment for a claim not related to a domestic support obligation or starts a new garnishment against you related to a consumer debt during the peacetime emergency, we want to try to help you. To start that process we ask you to submit a complaint using our online Consumer Assistance Request Form or call our
Consumer Assistance Request Form or call our Consumer Assistance Hotline at 296-3353 , 1-800-657-3787 , or 1-800-627-3529 .
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Payment Status Not Available
If you see the message Payment Status Not Available, then there are three possible reasons according to the IRS:
- You are not eligible for a stimulus payment.
- The IRS does not have enough info to issue a payment
- Or the best-case scenario is that your payment has not been processed yet.
The IRS states on their website that you will need to check back again for updates as they will continue to process and issue payments through 2021. What could hasten the process is filing your 2020 tax return electronically.
What If A Beneficiary Alleges A Representative Payee Misused The Economic Impact Payment
Date: March 26, 2021
Because an EIP is not a Social Security or SSI benefit, SSA does not have authority to investigate or determine whether the EIP has been misused. However, if SSA receives an allegation that the EIP was not used on behalf of the beneficiary, SSA may decide to investigate for possible misuse of the beneficiarys Social Security or SSI benefit payments. SSA may also determine the representative payee is no longer suitable and appoint a new representative payee.
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I Got A Letter Saying My Stimulus Payment Would Be Offset Was It A Mistake
If you received an IRS Notice CP21C saying your stimulus payment would be held back to pay an old tax bill, you can disregard it. More than 100,000 taxpayers got this letter from the IRS in error, according to the agency. Instead, they should have received letters stating that their first Economic Income Payment couldnt be distributed, and they should use the Recovery Rebate Credit worksheet to claim their payment on their taxes.
Are Adult Dependents Eligible For A Payment
No. Only dependent children who are under 17 years old are eligible for an additional $600 stimulus payment, which goes to the taxpayer who claimed them on their 2019 tax return.
Some stimulus proposals have included adult dependents, including approximately five million 17- and 18-year-olds, four million college students aged 19-23 and five million adult dependents like elderly parents. Most recently, Bidens American Rescue Plan includes $1,400 payments for adult dependents.
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Didn’t Get The Full Third Payment Claim The 2021 Recovery Rebate Credit
You may be eligible to claim a Recovery Rebate Credit on your 2021 federal tax return if you didn’t get a third Economic Impact Payment or got less than the full amount.
In early 2022, we’ll send Letter 6475 to the address we have on file for you confirming the total amount of your third Economic Impact Payment and any plus-up payments you received for tax year 2021. You will need this information to accurately calculate your 2021 Recovery Rebate Credit when you file your 2021 federal tax return in 2022.
The California Franchise Tax Board Is In The Middle Of Distributing The Direct Payments For Californians But Some Residents May Have Been Missed Out
Millions of California residents became eligible for a Golden State stimulus check earlier this year when Gov. Gavin Newsom signed the California Comeback Plan into law. The $100 billion package ensured that two-thirds of adult residents could get the direct payment, but not everyone has received one yet.
First and foremost, residents had to have submitted their 2020 tax return before 15 October 2021 to be eligible for a payment. Each individuals entitlement is based on information submitted in their latest filing.
REMINDER: The deadline for Californians to submit their 2020 tax returns and qualify for the Golden State Stimulus is tomorrow October 15th! Were putting money directly back into the pockets of those that need it most.
Office of the Governor of California
The initial rounds of payments were primarily comprised of direct deposits straight into the beneficiaries bank accounts because this was the faster payment method. However the California Franchise Tax Board have confirmed that the vast majority of these had been sent out by 15 November, meaning that anyone still waiting will likely get a paper stimulus check.
When will my physical Golden State stimulus check arrive?
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What Is The Stimulus Check
As part of the $2.2 trillion CARES Act, the federal government will issue payments – by check or direct deposit – to millions of income-qualified Americans. This is what we mean by “stimulus check.” The purpose of the payments is to help people cover basic necessities at a time when many have been told to stay home and have lost income.
Why Did We Get Only Half The Amount
Many couples are finding that they are getting direct deposits for only a portion of what they think their stimulus payment should be. Some have gotten half of their payment deposited one week and half the next, and other couples are finding that their dependents’ share of the stimulus money is split between the two parents.
The IRS has explained that the first payment made might be based on a taxpayer’s 2019 tax return, and the second payment is a “plus-up” payment that is based on the taxpayer’s 2020 tax return.
The IRS has also said that part of the problem may be with “injured spouse” claims on a tax return. of only one spouse, the “injured” spouse can request a refund.) The IRS says that these couples will get their payments as two separate payments.
If you haven’t received the full amount, wait until you get your Notice 1444, Your Economic Impact Payment, from the IRS. That letter should have the correct amount of your stimulus payment. If you don’t receive deposits or checks in that amount, you may have to file a Recovery Rebate Credit . You can also read the IRS’s press release from April 1, which contains a lot of helpful details.
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