The Internal Revenue Service is issuing letters to Americans asking that they repay all or part of their stimulus funds under the American Recovery and Reinvestment Act, or CARES Act.
Different Financial Aids Americans Received
In a published article in CNET, individuals and families that qualify for the payments have received a total of 186 million third stimulus checks. Plus-up payments are available for individuals who are qualified for a bigger check based on their 2020 tax returns. But what if the IRS sends you stimulus money that you don’t qualify for? It’s possible that you’ll have to repay the money you were given in error.
These are possible situations in which you’d have to repay stimulus funds for any of the three checks you got. The IRS, for example, made a mistake with the initial stimulus check and issued payouts to individuals who weren’t qualified. If you get a check-in mistake, depending on the payment type (paper check, EIP card, or direct deposit), there are particular methods to return the funds.
Why Do You Need To Return the Stimulus Money?
Several criteria are used by the government to decide who is and is not eligible for a stimulus payment. If you fit into any of the following criteria and got a stimulus check, it was most likely due to human error:
- You got a check for someone who died, but there’s some ambiguity here.
- You do not have Social Security Number which is a requirement in getting the payment.
- You are a “Non-resident alien.”
- You are not an American citizen but filed taxes.
- Your adjusted gross income exceeds the limit; for example, a single taxpayer with the second check would have $87,000 in adjusted gross income.
- You received stimulus payments twice
- You’ve been declared dependent on someone else’s tax return (this applies to the first and second checks).
Here’s How To Return the Money
- Make the check payable to the US Treasury using a personal check or money order. You must additionally put “2020 EIP” and the taxpayer identification number or Social Security number of the individual whose name appears on the cheque.
- Tell the IRS why you’re returning the cheque on a separate piece of paper.
- Send the cheque to the proper IRS facility, which varies depending on where you reside.
It is important to note also that even if you don’t typically file taxes if you were qualified for the first or second stimulus check and it never came, you’ll need to claim it as a Recovery Credit Rebate on your 2020 taxes this year. Alternatively, you may need to initiate an IRS payment investigation.
Related Article: Stimulus Check Update: These States Will Receive New Payments