August 10, 2020
AliExpress WW
Too little or too much money? No payment at all? Here's what the IRS says about inaccurate incentive payments

Too little or too much money? No payment at all? Here’s what the IRS says about inaccurate incentive payments

AliExpress WW

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AliExpress WW

Millions of Americans received their economic incentives of up to $ 1,200 per person. But some look at these amounts and wonder what happened.

Some believe that these checks are framed for less than they expected. Others may find that they get more than they thought they were entitled to.

False expectations regarding the amount of payments can be one of the reasons for the misunderstanding. Checks are based on your adjusted gross income from your tax return for 2019 or 2018, depending on which date is the most recent.

It also depends on your tax status — whether married or not — and also on all your dependents under the age of 17.

There are other variables that affect the amount of these checks, especially if you exceed a certain income threshold – $ 75,000 for individuals and $ 150,000 for couples. For incomes above these levels, your government check will be reduced. Payments are completely discontinued for incomes over $ 99,000 for individuals and $ 198,000 for couples.

IRS has Information provided to help Americans figure out how much their pay will be.

However, since the government threw money to help the Americans, inaccuracies are possible.

Here is what we know now about how these situations will be handled.

If your payment failed

Some people said they were paid much less than they expected.

Some reasons for this may be legal. If you are behind child support, you may have missed the check. If you are married to a non-citizen, you can also be excluded from a lump sum payment in accordance with the terms of the legislation authorizing payments.

However, many complained that their payments were not justified for one key reason: their children under 17 years of age, each of which is eligible for $ 500, were not included in the checks.

For large families, this can be a large amount.

“If you have not received the entire amount for which, in your opinion, you are entitled, you will be able to claim an additional amount when filing a tax return for 2020” IRS states on your site.

The Agency also recommends that you save the received form regarding incentive payment, Notification 1444, and refer to it when submitting a declaration for 2020. At this time, you will be able to apply for additional loans for which you are entitled.

“I hope that in the interim, we will receive more guidance, especially with the goal of making payments on the economic consequences of providing liquid cash to vulnerable households,” said Garrett Watson, senior policy analyst at the Tax Fund.

If you got too much money

Meanwhile, some people report the opposite problem – their incentive checks were too generous.

This could happen if divorced parents received $ 500 for the same child or children.

The IRS guidance on this is mixed.

Those families that receive re-payments for dependent children will most likely not have to return the money.

“There is no provision in the law requiring payment to be paid off,” the IRS website says.

But both of these parents must keep a notice of their incentive payments that they receive for their 2020 tax reports.

In other cases, taxpayers eligible for incentive payments have died, but in any case they were sent checks based on their tax returns in 2018 or 2019, and relatives received the money. These amounts must be returned to the IRS, Agency states on your site along with directions about how relatives or other partners can return the money.

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

If you are still waiting

Although most of the one-time checks have passed, others still ask: where is my money?

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

The government is in the process of sending out paper checks, while some people can receive their money with a prepaid debit card.

The process of sending all payments may take months in accordance with the Congress schedule.

More from Invest In You:
Do not discard this prepaid debit card. It could be your incentive payment.
Four simple things to support your pandemic finances
This simple financial plan makes it easy to overcome difficulties.

If you do not receive your money this year, they will most likely come to you during the tax filing season next year. Persons wishing to agree on these payments will have to follow further recommendations.

“They will get it anyway,” Watson said. “The big question is, will this restructuring happen this year or will it happen next spring?”

The latest information from the IRS indicates the tax filing season of 2020.

“The IRS will provide information on what actions you need to take when you file the 2020 tax return, when it will be available,” the agency said on its website.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns,

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