The 1,400 dollar stimulus check has sent excitement waves in American households as families and individuals are able to make ends meet after suffering the economic consequences of COVID-19, but a number of people haven’t received the full amount they were eligible for.
The Internal Revenue Service released a statement on Monday stating that they will automatically correct miscalculations.
“If there’s a mistake with the credit amount … the IRS will calculate the correct amount, make the correction, and continue processing the return,” they stated. “If a correction is needed, there may be a slight delay in processing the return and the IRS will send the taxpayer a letter or notice explaining any change.”
Third stimulus check miscalculations
Miscalculations would include people who were eligible for the stimulus check but didn’t get one or who didn’t receive the full amount. This includes the first two stimulus checks as well.
The way you can let the IRS know of a miscalculation is on your now delayed 2020 federal income tax return or as a Recovery Rebate Credit (RRC).
When you submit your tax return, the federal agency determines both your eligibility and the amount you would be entitled to based on your former year’s tax return. This is followed by the IRS subtracting any stimulus payment amount already issued to the taxpayer in order to determine the amount owed to you.
If you happen to be part of this group who is due an additional amount, then the IRS will notify you of the changes on the amount of their 2020 credit from what you may have calculated when filing the return.
Who could have received an incorrect amount?
The following groups may have received the wrong amount in their stimulus check.
- -Those who welcomed a baby in 2019 or 2020 who wasn’t claimed as a dependent in the previous tax year
- -Those who had no social security number available for employment
- -Those with a claimed child dependent who was 17 or older on January 1, 2020
- -Those affected by mathematical errors that may have occurred when calculating gross income
- -Those who suffered the loss of a job or an income drop in 2020
- -Those who changed address or for whom the IRS didn’t have banking information on file
There is a large possibility that you may not know you are owed more until you actually receive your payment and still you may not know unless you compare your estimated figure with the amount the IRS calculated for you, which appears on the letter the IRS sends you. That is why it is important for you to calculate an estimate of what you should be expected to pay.
How can you calculate the amount you should receive on your third stimulus check?
It is important to know that the eligibility criteria have changed with the third stimulus check. If your AGI is equal to or more than 80,000 dollars (single taxpayers), 120,000 dollars (head of household) or 160,000 dollars (filing jointly), you won’t be eligible.
However, if you earn less than the figures indicated above there are a number of stimulus check calculators available that you can use to get an estimate of your check amount.