Ask Liz Weston

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stimulus check

Q&A: 2020 taxes bring another stimulus shot

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Dear Liz: My 2019 tax return was electronically submitted May 11 and my income was low enough to qualify for a stimulus payment. I got my refund at the end of July but was told I wouldn’t get a stimulus check because my 2018 income was too high. The IRS agent on the phone said I could request the money when I filed my 2020 taxes. But isn’t that past the deadline? The agent sounded like he was just trying to get me off the phone.

Answer: He probably was, but he gave you the correct information. The IRS used the tax returns it had on hand this spring when it started sending out stimulus payments. Since your 2019 return hadn’t been filed, it used your 2018 income to determine how much, if anything, to send you.

People who didn’t get checks or got too little aren’t out of luck. The stimulus checks were an advance payment of a credit that will be added to people’s 2020 tax returns. If you should have received a check but didn’t, you’ll get the full credit added to your refund next year.

Friday’s need-to-know money news

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Today’s top story: The 2 costs that can make or break your nest egg. Also in the news: Buying stocks in a year of uncertainty, getting paid for family caregiving, and how people spent their stimulus checks.

The 2 Costs That Can Make or Break Your Nest Egg
Spending less on housing and transportation could help you save more for retirement.

In a Year of Uncertainty, Should You Still Buy Stocks?
Wading into the market.

Yes, It’s Possible to Get Paid for Family Caregiving
But there’s a lot to consider.

How People Spent Their Stimulus Checks – and What You Can Learn From Them
Use your stimulus check, or any extra money, to improve your financial situation during these uncertain times.

Monday’s need-to-know money news

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Today’s top story: How new grads can handle 3 essential post-college questions. Also in the news: A new episode of the SmartMoney podcast on money goals and bank bonuses, the possibility of another stimulus check, and everything that goes away when coronavirus benefits end in July.

How New Grads Can Handle 3 Essential Post-College Questions
The real world is a bit different these days.

SmartMoney Podcast: Setting Money Goals at Milestone Birthdays, and Bagging Big Bucks with Bank Bonuses
Use your big birthday to set a new goal.

Is Another Stimulus Check Coming?
Maybe.

Here is everything that goes away when coronavirus benefits end in July
Start planning ahead for changes.

Friday’s need-to-know money news

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Today’s top story: Now is the time to teach your Gen-Z kids about credit. Also in the news: 1 in 4 retirees say COVID-19 may force them to go back to work, when and how should you report your no-show stimulus check to the IRS, and how to set up a zero-based budget.

Now Is the Time to Teach Your Gen-Z Kids About Credit
Preparing them for the real world.

1 in 4 Retirees Say COVID-19 May Force Them to Go Back to Work. What This Could Mean for You
A dramatic change in plans.

When and how should you report your no-show stimulus check to the IRS?
Tracking down your check.

How to set up a zero-based budget
Making your income and expenses match.

Q&A: Stimulus money for Social Security recipients is finally on the way

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Dear Liz: My mother filed a paper return for 2019 in early March but hasn’t received her refund yet. Also, she hasn’t received the stimulus check to which she is entitled. She receives Supplemental Security Income via direct deposit and she included her banking info on her tax return for direct deposit. Given the IRS’ limited staffing, when might she receive her money? Will she still receive her stimulus check if many more months pass before the IRS processes her tax return?

Answer: Your mom may have already received her stimulus paymentby the time you read this. The Social Security Administration said Tuesday that it had started sending payments to SSI recipients.

The best way to check her refund status is via the IRS site. People who filed electronically can check their refund status 24 hours after filing. When a paper return is filed, people should wait four weeks before checking. She’ll need to enter her Social Security number, filing status and exact amount of her expected refund.

Q&A: Getting your stimulus check

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Dear Liz: Do you have suggestions on what we should do about not receiving our stimulus check? We have our Supplemental Security Income checks direct deposited, making our bank information correct and known to the IRS. I have checked the IRS “Get My Payment” site daily and continue receiving the message, “payment status not available.” I’ve contacted the IRS, our governor, both state senators, our congresswoman, the mayor and several in the media without a response. Whom can I contact to receive an answer and information?

Answer: The U.S. Treasury Department says people who receive SSI should receive their relief payments in early May. The huge volume of payments means the money is being doled out in stages, but the IRS portal that’s supposed to help you track your payment has experienced a number of glitches.

One possible workaround is to enter your address on the IRS website in capitalized letters. Older computer systems and buggy programs sometimes respond to capital letters when they can’t process lowercase ones. The IRS insists the tool is not case sensitive, but it does suggest not using punctuation when entering your address.

The $1,200 payments are being sent automatically, but if you’re on SSI and have children 16 or younger, you only have until May 5 to request an additional $500-per-child payment through the IRS portal.