On March 11, the American Rescue Plan Act was signed to help struggling Americans and many have already received the money. Here are 6 facts you should know about the third stimulus check.
We all already know who is eligible to receive it, how much money corresponds per dependent, how much money you can receive and how you will receive it. But there are other things you may not know about direct payments.
There are some additional things to pay attention to if you want to make sure that you will receive the correct amount of money
1. The IRS may send you an additional payment
As the IRS allows you to claim any missing stimulus money from the first two payments as a credit on your taxes this year, if your income was less in 2020 than in 2019 or you added a new child or dependent to your tax return 2020, you may qualify for a bigger check this time.
This will also happen to those who filed and paid their taxes before the $10,200 tax break for unemployment benefits was enacted.
Instead of making you wait until you file next year to claim the missing amount, the IRS is making additional payments this year. The agency will automatically recalculate your payment to send you your deposit without having to request it on your modified tax return form.
2. You have one year to cash a paper check
Although most of this third round of payments have been direct deposits in bank accounts, if the IRS doesn't have the necessary banking information, it could mail your payment as a paper check.
If this is your case, remember you have one year to cash the check before it expires. If you do not meet this deadline, you would have to do additional paperwork to request the replacement of the expired check.
3. If you lose your check you can request a replacement
If you suspect that your paper check payment has been lost, stolen, or destroyed, you can start the process of receiving payment by requesting a trace of the payment.
You can also request the replacement of your lost EIP debit card.
4. Both parents who share custody of a child no longer receive money
During the first two stimulus checks, parents who are not married and who share custody of a child, in some cases, have each received payment for the same child. However, for the third stimulus check, Congress closed this possibility.
5. If you have a new dependent in 2021, you can claim the additional money
If you had a baby this year or added a new dependent on your 2020 tax return, then you may qualify for an additional stimulus check, as well as a $ 1,100 claim on your taxes this year.
6. 13.5 million additional dependents will receive a stimulus check
With the CARES Act that authorized the first stimulus check a year ago, 69.8 million dependents under the age of 16 received the payment. With the new rules on dependents, an additional 13.5 million people will receive a stimulus check.