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Time is running out to determine if you’re eligible for the so-called “higher” stimulus payments on your 2021 taxes – which are part of the economic impact payments allowed by the American Rescue Plan Act of 2021. The deadline to see if you are eligible is December 31st.
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Mark-up payments are additional payments that the Internal Revenue Service (IRS) sends to those who have received a third economic impact payment based on a 2019 income tax return or information received from the Social Security Administration or from the Veterans Administration. For example, you can get an increased payment if your income was lower in 2020 compared to 2019 or if you added a dependent on your 2020 return, according to the IRS.
“You don’t need to take any action other than filing a 2020 tax return as soon as possible to give the IRS time to process an increased payment before the end of 2021 if you’re eligible,” the IRS on its website.
Premium payments are sent separately from 2020 tax refunds and previous economic impact payments. They are normally issued within 2 weeks of the 2020 tax return being processed.
“We send additional payments to qualifying taxpayers every week until the legislative deadline of December 31, 2021,” the IRS said.
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Eligibility for payments includes dU.S. citizens or residents with an income of $ 150,000 if they are married and file a joint declaration or if they qualify as a widow or widower; $ 112,500 in case of declaration as head of household or; $ 75,000 for any other filing status, according to the IRS.
Forbes explained that because the IRS is aware that many Americans saw their income drop in 2020 during the pandemic, this payment is the difference between what they initially received based on their 2019 income and what they paid for. they were entitled on the basis of their 2020 income.
Forbes explained that if a person with no dependents made $ 76,000 in 2019, they would have received $ 1,120 as their most recent stimulus payment, since their Adjusted Gross Income (AGI) was above the maximum of $ 75,000 for the full stimulus payment of $ 1,400. “If their AGI fell to $ 50,000 based on their 2020 filing, the IRS would send a ‘higher’ payment of $ 280 for them to receive the maximum raise amount of $ 1,400, as they are now eligible based on their 2020 return, ”according to Forbes.
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The IRS has said that you can check the status of your grossed-up payment with the Get My Payment tool. Plus, if you have to file a federal income tax return for 2020 and have income of $ 72,000 or less, you can file your tax return electronically for free with the IRS Free File Program.
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