More than four months after it started, the pandemic’s third round of stimulus checks is underway still happening. The IRS says it continues to push out millions of aid payments — including extra money to people who have already gotten a third check.
The IRS just announced it has sent hundreds of thousands of additional bonus payments to Americans, based on information gleaned from recently filed tax returns. And more than 1 million other people who never got a round 3 incentive check are finally getting some cash, thanks to their 2020 taxes.
If you have filed a return in the past few weeks, your name may be on one of the new incentive checks and may help you pay off debt or bills, or give you some money to save, invest, or spend.
Brand new incentive checks and ‘plus-ups’
The IRS said on Wednesday it has distributed an additional 2.2 million direct payments in the past six weeks under the COVID-19 rescue package that Congress passed and President Joe Biden signed as early as March.
The last incentive checks had official payment dates up to July 21, and they were all paid out using tax returns the recipients had recently filed.
More than 900,000 of these new incentive checks are what the IRS calls “plus-up” payments: bonus money for people who previously received third-round incentive checks, but not the full $1,400.
If you had received a reduced payment, it may be based on your 2019 tax return. If the tax authorities now have your 2020 return and it turns out that you earned less last year than the year before, you may be eligible for a supplement.
Meanwhile, about 1.3 million of the new payments will go to Americans who hadn’t received any incentive from the latest round because the IRS didn’t know how to reach them. Because those people recently filed their tax return, the IRS got the information it needed to send the money.
Don’t usually file a tax return? you could miss
The brand new set of incentive payments is worth more than $2.2 billion, bringing the third-round total to 171 million – estimated at about $400 billion.
If you do not normally file taxes and have not yet received a stimulus check from the last round, the IRS urges you to file a 2020 return. Not only can you receive an allowance, but also other benefits, including the, new monthly payments for families of this year’s extended children’s discount.
Incentive payments will continue to be paid weekly this summer, says the tax authorities in a press release.
To receive a full $1,400 stimulus check, you must file a tax return showing adjusted gross income (AGI) — your total income minus some deductions — of $75,000 or less. If you and your spouse are applying together, the AGI threshold is $150,000.
If you don’t get a stimulus this time
Most Americans will come up empty-handed from the latest wave of stimulus funds. If you could really use a check but don’t get one, you have a number of ways to give yourself a financial boost.
Transfer your mortgage. If you’re a homeowner and haven’t refinanced at ultra-low interest rates in the past year, you may be missing out on some groundbreaking savings. At current rates, 13.9 million homeowners save an average of $293 per month through refinancing, mortgage data and technology provider Black Knight said recently.
Reduce your insurance payments. As you lower the cost of homeownership, look at what you’re paying for homeowners insurance. A little comparative shopping is possible save you hundreds of dollars next time you need to extend your coverage. The same strategy can help you find a better car insurance dealverzekering.
Reduce your debt. Credit cards may have been a lifesaver during the pandemic, but their high interest costs can drain your finances for years to come. Converting your balance into a loan with a lower interest rate for debt consolidation can help you pay off your debts faster and affordable.
Get serious about saving. Cancel monthly subscriptions you don’t use, resist the urge to have your meals delivered, and hit the grocery store with a list to stick to. When you shop online, try your luck with a free browser add-on that automatically die hunts for better prices and coupons.
Grow your pocket money. You don’t need a check from the IRS to earn returns in today’s red-hot stock market. A wildly popular app lets you invest in a diversified portfolio using nothing more than “change” of your daily expenses