NEW stimulus checks could be hitting your bank account in September if you sign up before the August 30 deadline as a $8,000 boost for families could arrive.
The new stimulus payments are expected to start arriving from the IRS from August 13 and again on September 15.
The last day to sign up for the September 15 payment is August 30.
The new cash is part of President Joe Biden‘s American Rescue Plan, which was signed into law in March.
The payment is the second of six child tax credit payments being sent to eligible families.
Families with kids under 13 could get a “surprise” stimulus payment of $8,000 in the form of a tax credit for childcare expenses.
It comes as calls are growing for a new stimulus check to be sent to Americans in need this month.
A fourth check, which is unlikely to be agreed upon in August, would follow the three previous payments sent during the pandemic.
Read our stimulus check live blog for the latest news and updates…
WHO IS RECEIVING BONUS MONEY IN FLORIDA?
Last week, stimulus checks worth up to $1,000 were handed out to first responders in Florida, News4Jax reports.
Payments were expected to arrive in bank accounts earlier this week.
Checks were also given to teachers in Florida and crews that participated in search and rescue efforts following the condo collapse in Surfside.
DO UNDOCUMENTED CITIZENS QUALIFY FOR THE CALIFORNIA STIMULUS?
Undocumented migrant families will also receive $500, as well as parents and guardians for each dependent child.
To qualify for the “Golden State Stimulus II” package, you must have lived in California for more than half of 2020 and you cannot be claimed as a dependent by someone else, according to financial expert Tom’s Guide.
Taxpayers must file their returns by October 15 so they can receive the extra cash.
CALIFORNIA STIMULUS CHECKS
An estimated two-thirds of the 40million residents will get the financial support in September as part of “California’s Comeback Plan”.
Taxpayers that earn between $30,000 and $75,000 a year will qualify for the check.
DEMOCRATS CALL FOR RECURRING CHECKS
Senators Elizabeth Warren and Bernie Sanders are leading the calls but the lawmakers didn’t specify what any future check should be worth.
And, members of the House Ways and Means Committee said a fourth and fifth stimulus payment could keep up to 12million Americans out of poverty.
More than 169million stimulus checks have been sent out since March as part of Biden’s American Rescue Plan.
But a fourth stimulus check looks unlikely as the president seems to be prioritizing the rollout of the child tax credit expansion program.
ONE IN FOUR FAMILIES STRUGGLING TO PAY FOR FOOD
Lawmakers continue to propose possible stimulus packages as four in ten Americans say their income still remains below pre-pandemic levels, according to a TransUnion survey cited by CBS.
And, research from the Center on Budget and Policy Priorities warned that one in four families struggled to pay for food or rent between 2014 and 2016.
2.7MILLION SIGNATURES ON CHANGE.ORG PETITION
More than 2.7million people have called for the White House to propose recurring checks worth up to $2,000 amid fears that the current amount is not enough.
Restaurant owner Stephanie Bonin, of Colorado, created the petition last year and support keeps growing.
She said that stimulus checks should be targeted at Americans who are struggling and instructed politicians that they need to learn from the past year.
WAITING FOR REFUNDS
Americans that mailed their return to the IRS should wait around four weeks.
Representatives can also only research the status of refunds 21 days after they have been filed electronically.
The wait is six weeks if you mailed your paper tax return.
Taxpayers can call the IRS to check on the status of their payment on 800-829-1040.
The agency has received more than 167million calls this year – four times more than 2019.
Officials warn the service is “extremely limited” at the moment, so you may want to use another method to track your payment.
WHERE’S MY REFUND TOOL
Alternatively, taxpayers can use the “Where’s My Refund” page where they are asked to enter their security number, filing status, and the exact amount they are due to be refunded.
If you’ve entered your details correctly, you will be directed to a separate page containing your tax refund information.
If there’s an error, taxpayers will be asked to check over their details and complete the form again.
But, make sure it has been 24 hours before you check the status of your tax return.
TAXPAYERS WILL RECEIVE IRS LETTER FOR MORE INFO
Taxpayers will receive a letter if the IRS needs further information and it depends on how quickly Americans respond to errors before refunds are issued.
Americans can check the status of their tax returns using several apps while they wait.
Those on the go can use the IRS2Go mobile tool that tells you the information you need to know.
It is free to download from Google Play, App Store, or from Amazon.
The IRS will inform taxpayers when it has received, approved, and sent refunds.
The app is updated once every 24 hours so you’ll get an idea of where your cash roughly is within this time frame.
DELAY IN TAX RETURNS
The IRS warns there may also be a delay if it includes a claim filed for Earned Income Tax Credit or an Additional Child Tax Credit using 2019 income.
And, returns that contain Form 8379 – a claim for injured spouse allocation – can take up to 14 weeks to be processed.
There are cases where refunds may need a “further review” so that could cause a longer waiting time.
The IRS will send households an explanation if the delay is caused by an error to a recovery rebate credit claim, according to CNET.
But, the agency will try to rectify the error before contacting taxpayers.
TAX REFUNDS TAKING LONGER THAN EXPECTED
The agency says that it’s taking longer than three weeks to process returns because of a “perfect storm” created by the pandemic.
IRS employees have been unable to access the agency’s facilities because they have been forced to work remotely, CNET reports.
Officials are dealing with the tax return rollout, sending stimulus checks, and calculating child tax credit payments, according to a Taxpayer Advocate Service report.
WHAT TO DO IF YOU WERE TOLD YOUR STIMULUS CHECK WAS SENT BUT YOU DID NOT RECEIVE IT
If the IRS’ online tool says it sent your stimulus check to you, but you didn’t get it, you’ll need to request a Payment Trace.
You can call the IRS on 800-919-9835 or send a completed Form 3911 in the mail to start a payment trace.
NEED MORE INFORMATION MESSAGE
If you’re getting the “Need More Information” message on the Get My Payment tracker, then the IRS says it hasn’t received enough information to send your payment electronically.
But if you haven’t received your stimulus check by mail, then again, you’ll need to claim a Recovery Rebate Credit.
If you’re getting the message “Please Try Again Later,” then you’ve been locked out of your account for 24 hours.
This might have happened because the information you entered didn’t match IRS’ records, or you’ve tried to access the site more than five times in 24 hours.
WHAT IF YOUR PAYMENT STATUS IS NOT AVAILABLE?
If you receive this message, then it’s best to make a Recovery Rebate Credit claim.
You’ll also need to file a 2020 tax return, even if you’re not required to do so.
A Recovery Rebate Credit calculates the eligibility and amount of your stimulus check based on information from this tax return.
You’ll need to fill out the Recovery Rebate Credit Worksheet in these forms on the IRS’ website, which will help check if you’re eligible for a payment.
The IRS has more information on how to file a tax return electronically on its website.
Once you’ve entered your information, you’ll get one of two messages:
- If you receive the message “Payment Status,” this means your check has been processed and will include information such as the payment date and how your check was issued.
- If you receive the message “Payment Status Not Available,” this means you were either not eligible for a payment, or the IRS wasn’t able to issue a payment.
FIRST STEP TO TAKE IF MISSING A CHECK
First, you need to log into the Internal Revenue Service’s Get My Payment tool.
You’ll be able to find out when the IRS sent out your check, how much it should be, how it’ll be paid if there’s a delay and more.
To use it, you’ll need your Social Security Number (SSN) or Individual Tax ID Number (ITIN).
If you’ve forgotten your SSN or need a new card, see how you can get a replacement on the official SSN website.
You’ll also need to enter your date of birth and address.
STATES OFFERING RELIEF PACKAGES
Nearly 26million California residents will receive stimulus checks worth up to $600 next month.
First responders such as paramedics and EMTs will also see a cash boost this month.
And, lawmakers in New Mexico are distributing $5million to residents that didn’t qualify for stimulus checks introduced by the White House, according to KQRE.
HOW AMERICANS ARE SPENDING THEIR CASH
Around 70 per cent of cash dished out during the second and third rounds was used to pay off debt or boost savings.
But stimulus checks are the one relief measure lawmakers agree work – meaning another direct payment may well be on the cards.
Those who filed their taxes before the plan was passed are possibly eligible for a refund on the overpayment of taxes on unemployment compensation.
Refunds started being sent by direct deposit on July 28; paper checks were being sent out on July 30.
AMERICAN RESCUE PLAN
The America Rescue Plan, signed into law by President Joe Biden in March, excludes up to $10,200 in unemployment from taxable income for individuals and married couples with an adjusted gross income of $150,000 or less.
The IRS has said those who received the letter without the correct information regarding the time allowed to debate the error will be given more time to look into it.
“The IRS is doing the right thing and will be issuing a supplemental notice providing taxpayers additional time, 60 days from the issuance of the new notice, to request an abatement, which includes providing taxpayers the ability to provide information or documentation to support the RRC,” the blog adds.
More than 1.5 million taxpayers are set to receive checks from the IRS this week in the latest round of refunds based on adjusted unemployment compensation.
60 DAYS TO QUESTION MATH ERROR
But letters informing millions of an “math error” in that payment fail to acknowledge that people have just 60 days to question it, according to the Taxpayer Advocate Service.
In a blog, they write: “[O]mission of this critical piece of information was beyond just bad customer service; it was a clear infringement of a taxpayer’s right to be informed and right to a fair and just tax system.”
Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting, said in April: “Anytime there is something new on the tax return it usually has an elevated error rate.
“So the IRS may have a greater volume of erroneous tax returns than normal, and refunds are generally slowed when the IRS detects such errors.”
MATH ERROR NOTICES
The IRS has sent out more than five million faulty “math error notices” to Americans who claimed relief payments, according to a report.
Taxpayers who claimed the Recovery Rebate Credit in their tax return last year may have received the note.
That credit allowed those who did not the correct amount for their first or second stimulus checks to receive it as part of a refund on their return.
OTHER STATES CONSIDERING TEACHING PAYOUTS
Teacher bonuses have not yet been introduced by the White House so state lawmakers must put forward proposals.
Earlier this month, Hawaii Gov. David Ige vetoed a proposal that would have seen teachers pocket up to $2,200 in extra cash, WTOP reports.
Bonuses have not yet been introduced in New Jersey, New York, and Pennsylvania.
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