With the COVID-19 pandemic continuing to swipe jobs, Americans are getting ready to apply for their plus-up and stimulus checks.
The year is almost up. Do you know what that means? Well, for some Americans, it means money given to them by the government. That’s right. Some Americans can see if they can get plus-up payments. The deadline for eligible Americans to apply for stimulus payments worth as much as $1,400 is Friday. That means. . . . .tonight.
Earlier this year in March, President Joe Biden approved the IRS payments part of the American Rescue Act. If eligible, certain Americans can receive a $1,400 check early next year. These payments can be given to those who earned less money in 2020 than 2019. They must’ve received a stimulus check based on their 2019 tax return or information obtained from the Social Security Administration.
For example, if you earned less money in 2020, something changed with your 2020 tax refund or added a dependent, you could be eligible for a plus-up payment. Once the IRS has s tax return, they can figure out whether or not someone is eligible.
Senior executive at wealth advisor Braun-Bostich & Associates in Pittsburgh, Cassandra Kirby, explains payment eligibility. “Let’s say a married couple with one child had adjusted gross income of $165,000 in 2019, and because their income was more than $160,000, they are not eligible for any portion of the third payment. However, in 2020, they had another child, and their adjusted gross income dropped from $165,000 to $155,000.”
This is because they’d fall within the $150,000 to $160,000 threshold with an additional dependent. They’d be eligible for $2,800 in stimulus money.
What Exactly Are Plus-Up Payments?
Plus-up payments are additional payments the IRS is sending to those who received a third Economic Impact Payment based on a 2019 tax return. It’s also based on information received from the Social Security Administration or Veterans Administration. They are often issued within 2 weeks from the time the 2020 tax return is processed.
According to Forbes, many Americans saw their incomes drop in 2020. Plus-up payments are the difference between what Americans originally received based on their 2019 income, and what they qualify for based on their 2020 income.
“If their AGI (gross income) dropped to $50,000 based on their 2020 filing, the IRS would send a ‘plus-up’ payment of $280 for them to receive the maximum stimulus amount of $1,400 since they now qualify based on their 2020 return,” Forbes states.
Although the COVID-19 pandemic has caused a lot of struggles for many Americans, these payments are likely to help them to stable places. Starting in January 2022, stimulus and plus-up payments will start rolling into the bank accounts of eligible Americans.