Baller Alert It's a lifestyle!
According to Fortune, the IRS stated this past Monday that they sent out 130 million stimulus checks and that more are on the way.
The agency explained in a release several reasons why people may have had expectations of receiving a certain amount in their check and ended up receiving less than they hoped for or more than they should have.
The top reason for your check amounting to less or more than expected is because the IRS is basing their decision on old information. This could have occurred because you didn’t file a 2019 return, or if you did file, it wasn’t processed during the time that the IRS calculated your stimulus check. This would lead the agency to use the information from your 2018 return as a default.
Changes including higher or lower-income and the birth or adoption of a child would not have been calculated. The IRS stated on their website, “In many cases, however, these taxpayers may be able to claim an additional amount on the 2020 tax return they file next year. This could include up to an additional $500 for each qualifying child not reflected in their Economic Impact Payment.”
Another possibility for the amount you received being different from your expectations could be a disparity in whether your dependent claimed was eligible for the child credit of $500. In order to claim the credit, the taxpayer has to be related to the child, reside within the same household for more than half of the year, and provide at least half of their support.
Also, keep in mind: “Parents who are not married to each other and do not file a joint return cannot both claim their qualifying child as a dependent.” Furthermore, college students do not generally qualify for an additional $500 credit.
The IRS also shared on their website that past-due child support could have been deducted from your check, or garnishments by creditors, which is another important factor to consider for your check being lower than expected.
It was recommended by the agency for everyone to keep the letter they received from the IRS after the check was dispersed. “In many instances, eligible taxpayers who received a smaller-than-expected Economic Impact Payment (EIP) may qualify to receive an additional amount early next year when they file their 2020 federal income tax return,” the agency stated.
