The distribution of the third stimulus check continues, thanks to this one, taxpayers can receive up to $ 1,400, couples, $ 2,800, and each taxpayer can receive up to $ 1,400 for each dependent.
To date – June 12 – the Internal Revenue Service (IRS), has issued more than 169 million economic impact payments, with a total value of 395 billion dollars.
The IRS is also sending Payments plus-up, which are in addition to the third stimulus check and are based on the 2020 tax return.
Does an additional stimulus check come based on IRS tax return?
The amount of the third stimulus check is based on the taxpayer’s last processed tax return. If the 2020 return has not been processed, the IRS calculates the corresponding amount of the third check using the information from the 2019 return. However, When the 2020 return is processed, the taxpayer may be entitled to an additional payment.
The IRS will automatically reevaluate if a taxpayer is eligible if their AGI decreased on their 2020 tax return. Through the additional check, the IRS will send the difference to arrive at the total amount due corresponding to the third stimulus check.
The tax agency issues additional payments each week as it processes the tax returns. To date – June 12 – the IRS has sent more than 8 million plus-up payments. The agency has up to December 2021 to finish issuing all payments.
Child tax credit
The IRS will also send the Child Tax Credit (CTC), which is based on the tax return. Thanks to the CTC, Eligible families can receive monthly payments of $ 250 and $ 300 or a one-time payment of $ 3,000 and $ 3,600.
Fourth stimulus check: What is known about the proposal?
If a fourth stimulus check passes, it will probably also be based on the tax return just like the previous three checks. Democratic lawmakers continue to pressure President Joe Biden to include the proposal in the American Jobs Plan or in the American Families Plan. However, the president has not commented on the matter.
Regarding its passage, it is unlikely to happen without the support of Republican lawmakers, who are not in favor of the proposal., arguing that another round of payments is not necessary, as the unemployment rate has decreased and the economy is recovering.