The Internal Revenue Service last week announced that another batch of Economic Impact Payments was being sent out this week as part of the American Rescue Plan.
While a large portion of the latest batch of checks will be going to those who get Social Security and Railroad Retirement benefits, others who have already received a stimulus check could be getting a supplemental payment the IRS is calling a “plus-up” payment.
Here is what you need to know about a plus-up payment, and who will likely be getting them.
What is a plus-up payment?
According to the IRS, the plus-up payment is “the first of ongoing supplemental payments for people who earlier in March received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.”
Who gets one?
The IRS will be assessing tax information to determine who gets the plus-up payments. The agency will be looking at those who have filed their 2020 tax return and may qualify for a larger stimulus payment because their income dropped significantly in 2020.
“These payments could include a situation where a person’s income dropped in 2020 compared to 2019, or a person had a new child or dependent on their 2020 tax return, and other situations,” according to the IRS website.
Other stimulus payment news:
The IRS also noted that stimulus checks would be going out this week and in the coming weeks to people for whom the agency did not have information before.
No action is needed by most people to obtain this round of Economic Impact Payments, the IRS noted.
Cox Media Group