Did the IRS overpay you?

Education & Training with KLSM CPA Firm, PLLC

Did the IRS overpay you?

The IRS has successfully delivered millions of stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, however, not all payments were made for the proper amount. If you had a major life change in 2018 or 2019, there may have been an error with your stimulus payment, and you might be responsible for repaying the IRS. The following are the most common stimulus payment errors:

· Not a US Citizen – You gave up your citizenship in 2019, and you received a stimulus payment, it should be repaid to the IRS.

· Deceased individuals – A stimulus check was made out to a deceased individual, it should be repaid to the IRS.

· Deceased spouse – Your spouse passed away, and you received a stimulus check that reflected an amount for a married couple, it should be repaid to the IRS.

Do you need to return a stimulus payment?

If you or a spouse meet any of the above criteria, you are responsible for returning the stimulus payment to the IRS. Please reference the instructions below on how to return a stimulus payment to the IRS based on the method of receipt.

· Received stimulus via check – To return a stimulus check, write "void" on the back of the check, include a note explaining why you are returning the check, and mail it to the IRS location that correlates with your state. Please see the IRS website for an appropriate location to send the check.

· Received stimulus via direct deposit – To return a direct deposit stimulus, send a personal check or money order to the IRS location that correlates with your state. Make the check payable to "US Treasury" and include an explanation of why you are submitting a payment along with your social security number.

Comments (2)

James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Krystin.

The government in my opinion has, lost it.  I'll leave it at that.

May 16, 2020 01:12 AM
John Juarez
The Medford Real Estate Team - Fremont, CA

The IRS did not overpay me. Thank you, Uncle Sam, for the money!

I did overpay the IRS once. It was many years ago when I worked for a salary and my wife did not work. Our only income was my salary and, of course, I received a W-2. We basically had no other income. I prepared my Federal and State tax returns and sent them in. In due time, I received a letter and check from the IRS. The letter said that I had made a mistake on my return. They corrected my return and said that I was owed money and go ahead and cash the check. I reviewed my State return and found that I had made the same mistake on that return. I filed an amended State return and got a check from them also.

That was many years ago. I have never prepared my own tax returns since then. I have always turned to a professional tax preparer. If I could not correctly prepare my returns in the simplest of circumstances, I knew I needed help.

Sep 07, 2020 06:54 AM