Stimulus Check: Why payment may be different amount than expected
The Internal Revenue Service said that more stimulus checks are on the way and they also explained why some people have received a different amount than expected.
The Internal Revenue Service (IRS) started sending stimulus payments in mid-April and as of yesterday 12 May, they have sent over 130 million with the promise that more are on the way as millions of Americans are still waiting for that payment. To check the status of their check they can visit the ‘Get My Payment’ portal.
The IRS said that payments are sent as a check by mail or through direct deposit for those who filed a 2018 or 2019 tax return. Some people have been getting a different amount of the $1,200 expected and the IRS noted that they had to revert to the 2018 tax return to calculate eligibility and amount of the economic impact payment.
This is important because if a person didn’t have a baby in 2018 but last year they had one the tax filing is different. Also income might have been lower one year and greater another that is why the IRS has set a guidance to claim the additional amount on your 2020 tax return.
Another reason why some people might not be getting the money that they were expecting is that the claimed dependents may not be eligible for an extra $500 payment. The taxpayer must live with the dependent more than half a year and provide at least half of their support.
Other factors include:
- Be a U.S. citizen, permanent resident or other qualifying resident alien.
- Be under the age of 17 at the end of the year for the tax return.
- Have a valid Social Security or an Adoption Taxpayer Identification Number (ATIN).
Also, it is important to understand that according to the CARES Act, college students would not qualify for the additional $500 payment if their parents are still claiming them as dependents. Also a full-time college student who is above the age of 17 is not eligible for the $1,200 if they are claimed as dependents by their parents.
The IRS clarifies that “if the student cannot be claimed as a dependent by their mother or anyone else for 2020, that student may be eligible to claim a $1,200 credit on their 2020 tax return next year.”