The IRS has announced that it would no longer distribute $1,400 stimulus cheques and plus-up payments due to qualified Americans in 2021.
However, taxpayers who submit their tax returns this year may still be entitled for those payments or additional funds.
According to a Treasury Department study, as of the middle of September, 644,705 persons had not received their third stimulus check. Many of those persons may have gotten the funds since then. It’s unknown how many payments are still owed.
The IRS has provided updated information on the Recovery Rebate Credit, which taxpayers may use this year to collect any money owing to them from one-time payments.
The American Rescue Plan Act allowed the third wave of stimulus funding last year.
Who Qualified for a Third Stimulus Check?
Individuals might get up to $1,400 through the third stimulus checks, according to the rules. Couples filing jointly might receive up to $2,800. In addition, qualified dependents may get $1,400.
To be eligible, you must be a U.S. citizen or a resident alien in 2021. You also needed a valid Social Security number, however there are certain exceptions for spouses or dependents.
In order to qualify for your own payout, you could not have been claimed as someone else’s dependant on a 2020 tax return.
To be eligible for the maximum payment, your adjusted gross income could not be more than $75,000 for individuals, $112,500 for heads of household, or $150,000 for married couples.
Individuals with an adjusted gross income of $80,000, heads of household with an income of $120,000, and married couples with an income of $160,000 received payments that were tapered off over time.
Who May Still Be Eligible for More Funds?
Some persons may be entitled for the entire $1,400 payment or further partial payments, especially if their circumstances have altered.
Parents who have a kid in 2021 may be eligible for a $1,400 payout. In addition, families that added a dependant to their family in 2021, such as a parent, niece or nephew, or grandchild, may be eligible for an additional $1,400.
Furthermore, those whose salaries have decreased may now be eligible for the money if their 2021 adjusted gross incomes are less than the requirements for full payments. If their earnings fall below the phase-out levels, they may be eligible for partial payments.
People who do not normally file tax returns and have yet to do so must do so this year in order to collect any possible payments.
The Recovery Rebate Credit funds for which you are entitled will either be deducted from your federal tax liability or included in your refund.
How to Apply for a Recovery Rebate Credit
Reminder: When you file, the IRS will not automatically compute any Recovery Rebate Credit amount to which you may be entitled.
“In order to receive this money, individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return,” the IRS stated in its information sheet.
More information on the Recovery Rebate Credit may be found on the agency’s website to check whether you are qualified for a payout.
If you have no income or an income of up to $73,000, you can submit your federal tax return for free under the IRS’ Free File programme.
According to the IRS, persons who have already received their third stimulus checks do not need to provide information on those payments in their 2021 taxes.
According to the IRS, if you are still lacking a first or second stimulus check delivered by the government in 2020, you must submit a 2020 tax return rather than claiming that money on your 2021 return.