Why IRS May Ask You To Return Coronavirus Stimulus Check

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New stimulus checks are unlikely to come, but it is likely that the IRS may ask some taxpayers to return some or the full stimulus check amount they received. There could be several reasons why the IRS may ask you to return a coronavirus stimulus check. Reasons could range from a change in your financial status to mistakes made by the IRS.

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Since the start of the COVID-19 pandemic, Congress approved three rounds of stimulus checks. Two rounds of stimulus checks of up to $1,200 and $600, were approved in 2020, while the third round of up to $1,400 was approved in 2021.

These stimulus checks were an advance credit and were based on individuals' latest tax returns . For instance, the checks in 2020 were sent on the basis of taxpayers' 2019 or 2018 returns. Moreover, the amount of your check depended on your income in your tax return.

So, after you file your latest tax return, and the IRS finds that your income doesn't meet the threshold, then the agency may ask you to return the extra amount you got.

Another reason why the IRS may ask you to return a coronavirus stimulus check is if you received a check for someone who died. The IRS says that the stimulus payment sent in 2020 for people who died in 2019 should be returned. Moreover, if you file a return jointly and your spouse died in 2019, then you should return the stimulus amount of that spouse.

The IRS can also ask you to return the stimulus check if you are not a U.S. citizen or are a nonresident alien but mistakenly got the check. You can also be asked to return the check if you got an extra stimulus check by mistake.

If any of the above reasons applies to you, then the IRS may ask you to return your coronavirus stimulus check. The agency generally sends a letter, detailing what you need to do to return the stimulus money.

For instance, if you already cashed the stimulus check amount, then you need to return the money through a check or money order. And, if you still have the original stimulus check, then you need to write 'VOID' on the back of the check and send it back to the IRS.

If you don't agree with the IRS, you can also file a dispute. The quickest way to contact the agency is to send a letter to the IRS office in your region.

A point to note is that the IRS will contact you regarding an overpayment by sending a letter to your last known address. This means if anyone contacts you via phone, text, or email posing to be from the IRS, then they are likely to be fraudsters. Always remember that the IRS never calls, texts, or emails unless it is in response to a message you already sent to the agency.

Updated on Mar 17, 2022, 9:49 am

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