Millions of Americans received stimulus checks in 2021 under the American Rescue Act, but some got payments they shouldn’t have.
Now, people want to know if they’ll need to pay it back if they got one they weren’t supposed to.
There have been three payments in all.
In 2020 there were two checks worth $1,200 and $600.
This latest one from 2021 was worth $1,400.
In 2021 people had the option of filing the recovery rebate credit on their tax return, which resulted in 9 million error notices going out between Jan. 1 and July 15, 2021.
These notices are to let people know of any changes and adjustments made, and 7.4 million were stimulus check related.
Are Americans going to need to pay stimulus checks payments back if they got too much?
According to The Sun, Kari Brummond, a tax preparer at TaxCure, said instructions on the 2020 1040 were specific. They stated that taxpayers needed to put what they were given for stimulus payments but if they got extra, they would not need to pay it back.
The math error has caused confusion for those that were sent notices.
The error has the IRS adjust balances due, which could lower a refund or increase a tax bill.
Evidently, the IRS is sending Americans balance due notices and not explaining how they came to the conclusion that the taxpayer owes the IRS money.
There are many reasons people may have received checks they weren’t entitled to, including a spouse dying before the IRS was made aware.
What to do if you get a notice from the IRS
You must respond to the notice the IRS sends within 60 days of receiving it.
If you do not respond, the IRS can begin collections and their determination on what you owe is solidified.
Normally you would lose your right to petition the court, but due to the gravity of the situation there may be exceptions.
The 60 day rule was missing from 5 million notices sent by the IRS.
The IRS resent letters with clearer directions after that.
While it isn’t entirely clear what the IRS may do, there is a chance you will pay the failure to pay penalty, so it’s best to respond within that 60 day window.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].