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Susan Tompor: IRS sends extra stimulus cash sent to some who lost jobs in 2020

Susan Tompor, Detroit Free Press on

Published in Home and Consumer News

Did you just get surprised by a little extra stimulus cash in your bank account? Maybe.

The Internal Revenue Service said late Thursday that its third batch of payments includes what it calls the first of many "plus-up" stimulus payments.

The “plus-up” payments will continue on a weekly basis going forward, the IRS said, as the IRS continues processing tax returns from 2020 and 2019. Yes, some 2019 returns need to be processed, too.

Under some circumstances, a person could be eligible for a new or bigger Economic Impact Payment based on their recently processed tax returns.

Perhaps a couple's income fell significantly after a spouse lost a job during the pandemic last year, and they ended up making far less money than they reported on their 2019 income tax return.

Or pehaps a parent now qualifies for more money because the 2020 tax return includes a new child or dependent, which would boost the household's stimulus payout.

 

Such ongoing supplemental or "plus-up" payments would apply to people who had already received stimulus money earlier in March but the initial payment was based on a 2019 tax return, not the 2020 return that had been recently filed.

A drastic reduction in income in 2020 could make or break whether some people qualify for a full or partial stimulus payment in this third program.

The income cutoff associated with the latest stimulus effort is much lower than the previous two stimulus programs.

The IRS noted that some people won't be eligible for the third payment even if they received a stimulus payment last year or stimulus payment in early 2021, based on the higher income limits associated with the first two programs.

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