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You may be receiving additional funds from the IRS, but this isn’t a fourth stimulus check—it’s a “plus-up payment.” You’ll only qualify for this if your third stimulus payment was based on your 2019 tax return, and if your income in 2020 was lower than it was in 2019. Here’s how the plus-up payment works.
Plus-up payments make up the difference of your third stimulus payment
Since the third stimulus check was distributed during the 2020 tax season, the IRS had to calculate your payment using whatever income information was available, whether that was from a 2019 or 2020 tax return. So, if your third stimulus check was based on your 2019 tax return and your income has decreased since then, the IRS still owes you the remaining balance.
The amount of your payment is dependent on your income. If you earned less than $75,000 in 2020 (or $150,000 if filing jointly), you qualify for $1,400. If your income surpasses these amounts, however, your payment will gradually decrease to $0 once your earnings hit $80,000 (or $160,000 for joint filers). Additionally, if you added dependents to your household since 2019, they will also qualify for stimulus payments.
How to claim a plus-up stimulus payment
If you're eligible for a plus-up, the IRS will automatically determine the amount owed to you based on your 2020 tax return, so there's nothing you need to do besides ensuring your return is filed. However, if you filed for an extension, note that your 2020 return must be filed and processed by Aug. 16 to qualify for the plus-up payment, as reported by Kiplinger.
If you're waiting for a check but haven't received it, there's a chance the IRS hasn't processed it yet, as they're still handling a large backlog, including 2019 tax returns.
What if I’m owed money for the first two checks?
Currently, the sole method for obtaining that money is by requesting a Recovery Rebate Credit when filing your 2020 tax return.
