What Happens if You Receive Two Stimulus Checks?

In the wake of the COVID-19 pandemic, the United States government has issued multiple rounds of stimulus checks to provide financial relief to individuals and families. These checks are intended to help offset the economic impact of the pandemic and stimulate the economy. However, there have been instances where individuals have mistakenly received two stimulus checks. This article will explore the potential consequences of receiving two stimulus checks and provide guidance on how to handle such a situation.

Eligibility for Stimulus Checks

To be eligible for a stimulus check, individuals must meet certain criteria, including income requirements and residency status. The eligibility criteria may vary depending on the specific stimulus program. Generally, individuals with low to moderate incomes are eligible for the full amount of the stimulus check, while those with higher incomes may receive a reduced amount or be ineligible.

Consequences of Receiving Two Stimulus Checks

If you receive two stimulus checks, you are not legally entitled to keep both payments. The government considers the second check to be an overpayment and may take steps to recover the funds. The consequences of receiving two stimulus checks can include:

• Repayment: The government may require you to repay the overpaid amount. This can be done through a reduction in future tax refunds or by direct debit from your bank account.
• Tax implications: The second stimulus check may be considered taxable income, which could increase your tax liability.
• Legal penalties: In some cases, intentionally keeping an overpaid stimulus check may be considered fraud and could result in legal penalties.

What to Do if You Receive Two Stimulus Checks

If you receive two stimulus checks, it is important to take the following steps:

1. Contact the IRS: Inform the Internal Revenue Service (IRS) about the overpayment. You can do this by calling the IRS at 1-800-829-1040 or by visiting the IRS website.
2. Return the overpayment: Once you have contacted the IRS, they will provide instructions on how to return the overpayment. You may be asked to mail a check or provide your bank account information for direct debit.
3. Keep records: Keep a record of all communications with the IRS regarding the overpayment, including any correspondence or payment confirmations.

Additional Considerations

• Mixed-status families: In some cases, mixed-status families, where one spouse is a U.S. citizen or permanent resident and the other is not, may receive two stimulus checks. In such cases, the non-citizen spouse is not eligible for the stimulus check and should return the payment to the IRS.
• Deceased individuals: If a deceased individual receives a stimulus check, the payment should be returned to the IRS. The executor or administrator of the estate should handle the return of the payment.
• Garnishment: Stimulus checks are generally protected from garnishment by creditors. However, if you owe back taxes or other federal debts, the IRS may garnish your stimulus check to satisfy those debts.

Receiving two stimulus checks can be a confusing situation, but it is important to understand the potential consequences and take the necessary steps to address the overpayment. By contacting the IRS and returning the overpaid amount, you can avoid any negative repercussions and ensure that the funds are properly distributed to those who are eligible.