You may have to pay your stimulus check back to the IRS

WHILE millions of Americans received stimulus checks in 2021, some may be forced to return the funds.

The latest round of state stimulus checks were issued in March 2021 and are valued at up to $1,400 under the American Rescue Act signed into law by President Joe Biden in 2022.

Some who received stimulus money could be forced to pay them back


Some who received stimulus money could be forced to pay them back

After the relief package passed, more than 175 million checks valued at $400 billion were written through December, according to the Internal Revenue Service (IRS).

However, if you received a check but fall under one of the following categories, you may need to return the funds to the IRS.

1. You received too much money

You were eligible to receive the full $1,400 stimulus payment if you earned $75,000 or less. The threshold has been raised to $150,000 for couples.

If you earned more than these amounts, the checks were phased out.

$1,200 in direct payments are shipping NOW - check when the money arrives
Thousands are still lining up to receive up to $4,000 worth of stimulus checks in 2022

If you received a full stimulus check but technically shouldn’t have provided the thresholds, you may have to pay the IRS back.

2. You received a stimulus check for someone who died

If you received a stimulus check for a deceased spouse, you may be asked to pay it back.

The first rounds of federal stimulus money from March 2020 were based on tax returns from 2018 and 2019.

If your spouse died during those years and you received two stimulus checks, you may have to return the funds to the IRS.

“I’ve known a lot of people whose spouses died in 2018, and when they filed their 2018 tax return in 2019, they filed the marriage as joint (which is the correct filing status in this situation),” Kari Brummond, tax advisor at TaxCure, told The Sun earlier this year.

She added that these couples, including deceased spouses, were the most likely to receive payments in the first round of the federal stimulus package — but the IRS hasn’t reached out to that group.

So in this case it’s not clear if the IRS will contact you – but be aware that it could happen.

3. Non-citizen

If you paid taxes in 2021 and met the income requirements, you may have received a stimulus check.

However, non-US citizens or foreigners who have received a stimulus check are not eligible.

As a result, you may be asked to return the payment – even if you paid taxes in 2021.

However, some states are sending aid payments to those who were ineligible for the federal stimulus check.

For example, New Jersey has sent up to $4,000 worth of payments to undocumented and recently incarcerated individuals.

4. Non-residents

If you are not a US citizen, you are considered a non-US resident for tax purposes.

So if you received stimulus funds while you were working and paying taxes, but you’re not a US resident, you’ll have to pay them back, too.

According to the IRS, a US resident for tax purposes is someone who meets the Green Card Test or Essential Presence Test for the calendar year.

However, there are some exceptions, so it’s best to check with the IRS to determine your tax residency status.

The IRS accidentally mailed checks to some people who had already received theirs.

In this case, it can be assumed that the funds will have to be repaid.

Additionally, according to the Taxpayer Advocate Service, between January 1 and July 15, 2021, the IRS sent out approximately nine million calculation error notifications.

7.4 million notifications related to stimulus checks.

Calculation errors may relate to an incorrect social security number, incomplete information, or incorrect enrollment status.

However, the IRS has reportedly sent math error notices with a lack of information.

“The IRS sends out due payment notices with no calculation or explanation analysis,” Dan Herron, a certified financial planner and CPA at Elemental Wealth Advisors, told CNBC last year.

And while the IRS usually includes a note on the error message that says you have more than 60 days to respond, more than 5 million taxpayers have received a letter without the 60-day language.

As a result, the IRS returned some letters with clearer language.

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Do you have a story for The US Sun team? You may have to pay your stimulus check back to the IRS


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