STIMULUS payments are hitting bank accounts and mail boxes across America – but many are smaller than anticipated.
As part of Congress’ economic relief bill, those who earn less than $75,000 a year are to get $1200 each, while couples with an income below $150,000 are to get $2400, the amount declining for higher earners.
Many parents have also been anticipating $500 for each eligible dependent.
If the amount sent to you by the Treasury Department falls short of what you thought it would be, there are a couple of likely reasons, the St-Louis Dispatch reported.
The IRS not being aware of all your children or dependents is a common reason.
A person’s 2019 tax return determines their payment. If a person has not filed a 2019 tax return, their 2018 tax return is consulted. So depending on which of your tax returns is assessed, the IRS might not be aware of any new or young dependents.
Similarly, if you don’t file a tax return but do receive Social Security, the IRS will base your payment amount off that, and children or other dependents may not be listed.
Another reason for your payment being lower than predicted is the tax year the IRS consults to determine the funds you receive.
For example, you may have earned more in 2019 than in 2018. It’s possible, given the hastiness with which the stimulus payments were sent, the IRS looked at your 2018 return, rather than your 2019 filing.
Frustratingly, those who receive a lower stimulus payment than they are entitled to won’t be able to collect the missing funds anytime soon, according to the IRS.
“If you did not receive the full amount to which you believe you are entitled, you will be able to claim the additional amount when you file your 2020 tax return,” the IRS wrote online on Thursday.
The first round of stimulus checks began to go out last month, and many Americans have already received the funds through direct deposit.
The distribution of the payments has included some hiccups, including an overwhelmed government website and payments to dead taxpayers.
The process was expected to take several months, and payments were prioritized in order from lowest to highest income.
President Trump hinted Thursday that a second round of coronavirus stimulus checks could be coming for millions of struggling Americans.
The US government has handed out about 130 million economic impact payments to taxpayers in the last month, and the IRS expects to be sending more than 150 million payments as part of the CARES Act.
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