Q&A: Don’t file an amended return after the stimulus tax break. The IRS is begging you

Dear Liz: You might want to inform your readers that they do not need to file an amended return if they filed before Congress passed its most recent stimulus plan, which excludes the first $10,200 of unemployment benefits. The IRS will automatically recalculate their taxes and refund the taxes paid on that amount of benefits.

Answer: In fact, the IRS is begging people not to file amended returns. (An exception, the IRS has said, is for those who the tax reduction would make newly eligible for the earned income tax credit or other tax breaks for lower income people.) The agency is still processing a backlog of returns and correspondence while issuing a third wave of stimulus payments and gearing up to send monthly child credit payments to millions of families.

You may need patience, however. The IRS has promised to refund any taxes paid on the first $10,200 of unemployment benefits earned last year, but has said the money will go out “this spring and summer.”

Friday’s need-to-know money news

Today’s top story: Ready player two? How couples maximize their credit card rewards. Also in the news: The new stimulus package helps ore college students, common tools that can save you time and money on taxes, and how to qualify for 100% subsidized COBRA payments.

Ready Player Two? How Couples Maximize Their Credit Card Rewards
These couples work together to double their rewards by engaging a “two-player” credit card strategy.

This Time, the Stimulus Package Helps More College Students
Things are different for the third round of payments.

Common Tools Can Save You Time, Money on Taxes
Some of these tools are already on your phone.

How to Qualify for 100% Subsidized COBRA Premiums
Find out what you need to qualify.

Monday’s need-to-know money news

Today’s top story: Should I pay for my hotel using cash, points or both? Also in the news: A new episode of the SmartMoney podcast on fake reviews and saving too much, 5 travel writers draft their favorite airlines, and where to get relief if there isn’t a second stimulus check.

Should I Pay for My Hotel Using Cash, Points or Both?
Here’s how you can figure out which booking option offers the best value.

Smart Money Podcast: Fake Reviews and Saving ‘Too Much’
How to tell if that review is sincere.

5 Travel Writers ‘Draft’ Their Favorite Airlines
In the spirit of the popular sports-related pastime, we’ve created our own fantasy airline draft.

Where to Get Relief if There Isn’t a Second Stimulus Check
Look for aid locally.

Tuesday’s need-to-know money news

Today’s top story: Is it harder for seniors to get credit cards? Also in the news: Factoring in fees on grocery, delivery, what to do if losing your job means losing your life insurance, and there’s still time to claim your missing $500 stimulus for dependents.

Is It Harder for Seniors to Get Credit Cards?
Even with more time to build history, seniors may have a hard time getting credit.

For grocery delivery, add fees to the list
Convenience comes at a cost.

What to do if losing your job means losing life insurance
Examining your options.

There’s Still Time to Claim Your Missing $500 Stimulus for Dependents
Another opportunity to get your stimulus.

Q&A: The IRS is finally staffing up. Here’s how to get your coronavirus stimulus money

Dear Liz: We do not make enough income to file tax returns, so we used the IRS site to apply for our economic stimulus payment ($1,700 for one adult and one teenage child). We received a response email stating our information was received successfully by the IRS several weeks ago. We included our bank deposit information for a fast direct deposit but the money has not arrived and we hear that the government ran out of money. We are desperate. What can we do or who can we speak with about this delay?

Answer: The government did not run out of money, and at a minimum you should be able to file a tax return next year to get your stimulus payment as a refundable credit. Since you need the money now, though, you should follow up with the IRS.

The IRS has reopened the general taxpayer helpline that was shuttered because of the coronavirus pandemic, but it has also added thousands of phone reps to a special hotline to deal with stimulus payment problems: (800) 919-9835. That’s the number you should call to inquire about your payment.

(Previous columns have dealt with people’s refunds being held up because the IRS didn’t have enough workers to open its mail. Tax processing centers are reopening, but it will take awhile to work through the backlog. You can check the status of a refund through the “Where’s My Refund?” tool on the IRS site or by calling (800) 829-1954.)