In an effort to boost the economy in the middle of a deadly pandemic, the Federal Government has given Americans stimulus checks.
Since it came to national attention in early 2020, the COVID-19 pandemic has wreaked havoc across the world and right here in the United States. Millions of people right here in our own country have been infected by COVID-19 and thousands have died. The most recent numbers show nearly 45 million cases of the virus in the U.S. They also show around 725,000 deaths since the outbreak. Even those who have not experienced the COVID-19 virus are still suffering because of it. One way the government has tried to fight back against issues caused by the coronavirus is by utilizing stimulus checks.
To this point in 2021, there have been three rounds of $1,400 stimulus checks distributed to Americans. Now, some stimulus check recipients will have to pay back some or all of the money they have received from these checks, according to the U.S. Sun. This measure could mean more financial burden for Americans still suffering from a weak economy.
Many people have or will receive letters from the IRS, claiming they will need to repay the federal government. The IRS can review tax returns and has the power to correct mistakes or errors that they might find. This can lead to an individual having to pay back their stimulus check money. The IRS has reportedly made around 9 million tax return corrections just this year. A majority of these corrections have to do with filing missing stimulus payouts. Now, the IRS is mailing out letters warning people that they owe money
Stimulus Check Repayment Causing Confusion Among Taxpayers
Getting a letter from the IRS saying you owe money due to missing stimulus checks can cause a great deal of confusion. Some of these letters from the IRS are reportedly without explanations as to why money must be repaid, causing confusion among recipients. Taxpayers are also finding it hard to contact IRS officials in order to sort the situation out. Dan Herron, a financial advisor, tells CNBC that the IRS is creating a difficult situation for some people.
“The IRS is sending out balance due notices with no calculation or explanation analysis,” Herron says. “They’re putting a lot of people at a disadvantage. Especially those that can’t necessarily afford to have [a tax professional] sit on the phone for hours at a time.”
Stimulus checks were part of the plan to bolster a heavily weakened economy due to coronavirus restrictions. While COVID-19 is still very much a factor in our everyday lives, it seems as if a corner has been turned with a vaccine and easing of social distancing measures.