More than 700,000 Americans will receive a supplemental stimulus payment this week as the IRS continues to process 2020 tax returns, the agency said Wednesday.
These "plus-up" payments, as the IRS calls them, will be sent to taxpayers who received a third stimulus check based on 2019 income, but qualify for more money based on their 2020 returns. The agency estimates it will send out more than $1.2 billion in supplemental payments, many of which should have hit bank accounts by April 14.
The IRS promised to send these supplemental payments earlier this year, when the start of tax season coincided with the passage of the American Rescue Plan (ARP) and its provision for a third stimulus payment. Taxpayers who expected a larger stimulus payment based on their 2020 return were encouraged to file their taxes as quickly as possible, but the IRS starting disbursing payments before it processed many returns.
The first plus-up payments were sent earlier this month, and the IRS plans to keep sending them on a rolling basis to everyone who is eligible as it continues to process 2020 returns.
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The agency also said that another 2 million payments began processing Friday, April 9, many of which went to veterans who don't normally file taxes, and other taxpayers for whom the agency previously didn't have bank account information for, but filed a tax return this year.
In total, the IRS has sent approximately 159 million payments during the third round of stimulus payments, valued at more than $376 billion.