As reported by cnet,

That extra stimulus money may not be yours to keep.


Sarah Tew/CNET

There may be 8 million Americans who are eligible for a stimulus check and never received it. But on the other side, there may also be people who got stimulus payments they weren’t actually entitled to receive, or received more money than they should have.

The IRS said it mistakenly sent stimulus checks to ineligible people last year with the first round of relief payments, and it’s possible the same thing happened with the second stimulus payments sent out in December. If you received a payment that you likely weren’t supposed to — perhaps you got stimulus money even though you make more than the specified income limit, for instance — the IRS expects you to send back the money. And depending on how you received the stimulus payment — by paper checkEIP card or direct deposit — there are specific ways to go about returning it.

We list the reasons the IRS would expect you to send back a stimulus check paid out in error, and how to do it. It’s also important to know your stimulus check rights and these key details about stimulus checks and taxes. (And here’s what’s happening with a potential third stimulus check, how much money the new payment could bring and when it might be approved.) This story is frequently updated.

Reasons you might need to send back a stimulus check

Qualifications are key to determining who is eligible for a second stimulus check. If you fall into any of these categories and received a stimulus check, it’s likely by error:

  • You received a check for someone who has died — but there’s some nuance here (more below).
  • You don’t have a Social Security number.
  • You’re considered a “nonresident alien” without a US citizen spouse.
  • You’re a noncitizen who files federal taxes.
  • Your adjusted gross income exceeds the limit; for example, $87,000 for a single taxpayer.
  • You’re claimed as a dependent on someone else’s taxes.

Here’s more information about who doesn’t qualify for the $600 stimulus check.


Now playing:
Watch this:

Second stimulus checks: Everything you need to know



3:22

How to return a paper check that hasn’t been cashed or deposited

If any of the above situations pertain to you, you may need to send your stimulus check back. Here’s how to do it for each scenario, per the IRS.

1. Write “VOID” in the endorsement section on the back of the check.

2. Do not bend, paper clip or staple the check.

3. On a separate piece of paper, let the IRS know why you’re sending the check back.

4. Mail the check to the appropriate IRS location — it varies depending on which state you live in.

Sending back stimulus money that you did cash or deposit

1. Use a personal check or money order and make the check payable to the US Treasury. You’ll also need to write 2020 EIP and include the taxpayer identification number or Social Security number of the person whose name is on the check. 

2. On a separate piece of paper, let the IRS know why you’re sending the check back.

3. Mail the check to the appropriate IRS location — it depends on which state you live in.

The process to return a check you received for someone who died

If you received a payment for someone who died in 2019 or earlier, the IRS says you should return the entire payment “unless it was made to joint filers and one spouse is still living.” If you’re the living spouse, you should return half the payment — just not more than $1,200 in all. 

098-cash-money-dollars-bills-stimulus-check-congress-pass-mail-banking-finance-desperate-poverty-us-treasury

While you’re still waiting on your check to arrive, you can track it.


Sarah Tew/CNET

However, if the check is issued in both your name and your deceased spouse’s name (and therefore you can’t deposit the money), you’ll need to return the whole amount to the IRS. After the agency processes the returned payment, it will issue a new check with the correct amount for you.

What should I do if I still haven’t gotten my stimulus check?

If you are among the more than 100 million people who were eligible to receive the second $600 stimulus check and you haven’t received it, you may be able to claim it as a Recovery Credit Rebate on your taxes, even if you don’t usually file taxes. Alternatively, you may have to start an IRS payment trace.

If you’re not signed up for direct deposit through the IRS, now’s a good time, as a third stimulus check is on the table. To do so, you’ll need to add your banking information when you file your 2020 taxes this year. We also encourage you to file your taxes as early as possible this year, specifically because of stimulus checks.

To stay updated on the latest stimulus check news, check what happens now that the IRS has stopped sending second stimulus checks. If you’re having stimulus check problems, do this instead of calling the IRS. Also, here’s what’s happening right now with a potential third stimulus payment.



Source link: cnet

LEAVE A REPLY

Please enter your comment!
Please enter your name here