Clear. 53.3   F New York
AI-Powered News Summarizer
Top Stories

More stimulus money is on the way for people who lost their jobs last year

April 5, 2021. Summarized by summa-bot.

Compression ratio: 47%. 2 min read.

More stimulus money is on its way for people who lost their jobs last year

Washington (CNN)The Internal Revenue Service started sending what it calls "plus-up" payments last week to people who are owed a bigger stimulus check based on their actual 2020 income than they initially received.

The original payments were based on 2018 or 2019 tax returns.

Once they file their 2020 tax return that shows a lower income amount, the IRS will automatically send them an additional payment.

But then the payments gradually phase out as income goes up.

The new income thresholds will be based on a taxpayer's most recent return.

If they've already filed a 2020 return by the time the payment is sent and it has been processed, the IRS will base eligibility on their 2020 adjusted gross income.

If not, it will be based on the 2019 return or the information submitted through an online portal set up last year for people who don't usually file tax returns.

But if your income fell in 2020, filing your tax return now -- before the payments go out -- may mean you'll get a bigger check.

Those who don't have a 2019 or 2020 tax return on file -- typically because their income is below the threshold for filing -- will still get the money automatically.

People who receive Veterans Affairs pensions and don't have a recent tax return on file are also still waiting for their stimulus payments.

Other households who are eligible for the new round of payments but haven't filed a 2020 or 2019 tax return and did not use the IRS's online portal for non-filers last year could also still be waiting for their stimulus payment.

The agency is encouraging those to file a 2020 tax return as soon as possible in order to receive their payment.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions