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Here’s what the IRS says about inaccurate stimulus payments

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Millions of Americans have received economic stimulus payments of up to $ 1,200 per person. But some take a look at these sums and wonder what happened.

Some find that these checks are issued less than they expected. Others may find that they receive more than they thought they could.

Incorrect expectations regarding payment amounts could be the reason for the misunderstanding. The checks are based on your adjusted gross income from your tax return for 201

9 or 2018, whichever is current.

It is also based on your tax return status – married or single – and your relatives under 17.

There are other variables that affect the amount of these checks, especially if you exceed certain income thresholds – $ 75,000 for individuals and $ 150,000 for married couples. Your government check will be reduced if your income exceeds these values. Payments will expire in full for income over $ 99,000 for individuals and $ 198,000 for couples.

The IRS has provided information to help Americans calculate the payment amount.

However, inaccuracies could arise because the government got the money out to help the Americans.

We now know the following about how to deal with these situations.

If your payment was missed

Some people have reported that they were paid far less than expected.

Some reasons for this can be legitimate. If you are behind on maintaining children, you may have missed a check. If you are married to a non-national, you may also have been excluded from the one-time payment based on the provisions of the law that approved the payments.

Still, many have complained that their payments were neglected for one main reason: the checks did not include their children under the age of 17, who are each entitled to $ 500.

For families with multiple children, this could be a large sum.

“If you haven’t received the full amount you think you are entitled to, you can claim the additional amount when you file your tax return for 2020,” the IRS website said.

The agency also recommends that you keep the form you receive for your economic stimulus payment, note 1444, and reference it when submitting your return for 2020. At this point, you should be able to claim the additional credits you are eligible for.

“I would be confident that we will receive more guidance in the meantime, especially with the intent that these economic impact payments will now provide vulnerable households with cash liquidity,” said Garrett Watson, a senior policy analyst at the Tax Foundation.

If you have received too much money

Meanwhile, some people have reported the opposite problem – their stimulus checks have been too generous.

This could have happened if divorced parents both received $ 500 for the same child or children.

The IRS guidelines on this topic are mixed.

For families who receive double payments for dependent children, they may not have to pay the money back.

“The law has no provision for repaying a payment,” the IRS website said.

However, both parents should keep the messages about their economic payments that they will receive for their tax documents for 2020.

In other cases, taxpayers who are entitled to economic stimulus payments have died, but have received checks based on their 2018 or 2019 tax returns, and their relatives have received the money. These amounts should be returned with the instructions to the IRS, the agency said on its website about how relatives or other employees can return the money.

If the deceased was married, their spouse only needs to return the money intended for their deceased partner.

If you are still waiting

While most of the one-time checks have run out, others are still asking: Where’s my money?

The answer to this question is that your money is probably still on the go.

The government is in the process of sending paper checks, while some people might get their money through a prepaid debit card.

The process of sending all payments could take months, according to a Congress schedule.

More from Invest In You:
Don’t throw away this prepaid debit card. It could be your stimulus payment
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If you don’t get your money this year, it will likely come to you during next year’s tax return season. Individuals wishing to reconcile these payments must be kept up to date for further guidance.

“You’ll get it one way or another,” said Watson. “The big question is whether the adjustment will take place this year or next spring.”

The latest information from the IRS indicates the 2020 tax return season.

“The IRS will provide information on what you need to do when you file your 2020 tax return as it becomes available,” the agency said on its website.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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