What is a ‘plus-up’ payment?
Per CNBC, some people received an additional payment on top of the stimulus check they already received. This is called a “plus-up payment.” That extra money went out to people who were due extra money because of their 2020 tax returns.
- Example: Let’s say you received your stimulus check based on your 2019 tax returns. Then, let’s say you filed your 2020 tax returns after you got the payment. Now, based on your earnings, you could have been due more money because your income dropped.
- “That includes those who received a stimulus check based on their 2019 tax returns, but who are eligible for more money now that their 2020 returns have been processed,” according to CNBC.
- Reasons for the increase could be a decrease in earnings or a new dependant, the IRS told CNBC.
What if you qualify but didn’t receive payment yet?
Fast Company reports that the IRS will automatically send you a “plus-up” payment when it hears about your income changes. Those interested or who have seen their incomes change will want to contact the IRS to receive that payment.
Why is there a ‘plus-up’ payment?
According to The Washington Post, Congress added the measure to help the IRS, which was already dealing with a backlog of cases because of the pandemic year.
- “Aware of the backlog at the IRS, Congress gave the agency the ability during this stimulus relief round to circle back and essentially top off people who were shortchanged because their tax situation changed in 2020,” The Washington Post reports.