Stimulus check: IRS fixes error over $500 credit for dependents
The IRS says it is now sending an extra $500 for dependents to some claimants who, despite qualifying, didn't get it as part of their CARES Act stimulus check.
Some people in the United States who did not receive their extra credit for child dependents as part of the CARES Act stimulus checks are being sent the money this week, the Internal Revenue Service (IRS) says.
Americans able to claim $500 on top of regular stimulus check
Under the terms of the CARES Act, a $2.2tn relief package signed into law in March, stimulus checks of up to $1,200 have been distributed to eligible Americans to help them cope with the financial impact of the coronavirus pandemic, with households also able to claim an additional $500 per dependent under the age of 17.
Extra credit not sent to some who used Non-Filers tool
However, some claimants who registered for their stimulus check using the Non-Filers tool - the IRS platform through which those not required to submit tax returns have been able to apply for their payment - have found that the extra money they were due for their qualifying dependents was left off their check.
According to the IRS, this error affected people who used the Non-Filers tool before 17 May.
$500 per dependent sent by direct deposit on 5 August, mailed on 7 August
The body said that direct-deposit payment of the outstanding $500 per dependent was scheduled to be made on 5 August, while paper checks or prepaid debit cards would be sent out on 7 August.
"If you received your EIP [Economic Impact Payment] by direct deposit, the additional $500 EIP per qualifying child will be direct deposited to the same bank account," the IRS explained. "If you received your EIP in the mail, the additional $500 EIP per qualifying child will be mailed to your address of record."
Second stimulus check expected as part of next relief package
Negotiations are ongoing between Democrats and Republicans over the next coronavirus relief package in the U.S., which is expected to include a second round of stimulus checks.
Released last week, the HEALS Act - Republican senators’ proposal for the relief legislation - suggested a fresh batch of EIPs of up to $1,200, with eligibility requirements that broadly mirror those of the CARES Act.
However, while the CARES Act limited the additional $500 per dependent to children under 17, the HEALS Act proposes including dependents of all ages. According to the Tax Foundation, this would make as many as 26 million more Americans eligible for the dependents’ credit.
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