What Is a Plus-up Promotional Payment? (and How Do You Know If You Get It)
You can get more money in the mail from the IRS, but this is not the fourth incentive check — this is an “additional payment.” You will only receive this check if your third incentive payment was calculated using the income shown on your 2019 tax return and if your income in 2020 was less than in 2019. This is how the add-on payment works.
Plus-up payments cover the remainder of your third incentive check
Since your third incentive check was sent in the middle of the 2020 tax season, the IRS had to calculate your payment using the income information at hand, be it your 2019 or 2020 tax return. Hence, if your third incentive check was based on your 2019 profitability and your income has decreased since then, then the IRS still owes you the difference.
Please note that the amount of your payment will depend on your income. If you earned less than $ 75,000 in 2020 (or $ 150,000 for co-applicants), then you will be eligible for $ 1,400. However, if you earned more than these thresholds, then the amount will quickly drop to $ 0 if you earn $ 80,000 (or $ 160,000 for co-applicants). Another way to get more money is to add dependents to your family from 2019, as they are also eligible for incentive payments.
How to request a plus-up incentive payment
If you owe a plus, the IRS will automatically calculate the amount you owe based on your 2020 tax return, so you don’t need to do anything other than make sure your tax return is filed. However, if you requested an extension for filing a tax return, please note that your 2020 return must be filed and processed by August 16 to receive the additional Kiplinger payment.
If you’re expecting a check but haven’t received it, it’s very possible that the IRS hasn’t processed it yet, as they are still dealing with a large backlog that still includes 2019 tax returns.
What if I owe money on the first two checks?
At the moment, the only way to get this money is to apply for a repayable recovery loan on your 2020 tax return.