Update on the Stimulus: Keep an Eye Out for This Irs Letter to Determine Whether You’re Eligible for More Funds
Now that tax season has here, it’s important to double-check that you’ve gotten all of the stimulus money you’re entitled to. The vast majority of Americans will have received their whole stimulus cheque. Keep a look out for Letter 6475, Your Third Economic Impact Payment, from the IRS if you’re not sure if you got enough money in your third stimulus check.
The letter will “assist Economic Impact Payment recipients in determining if they are eligible to and should claim the recovery rebate credit on their 2021 tax returns when they file in 2022,” according to the IRS.
Following the ratification of the American Rescue Plan in March 2021, the federal government mailed the third stimulus cheques between March and December 2021. The IRS distributed over 160 million checks to Americans in the third round of Economic Impact Payments, with each adult receiving up to $1,400 and each dependant receiving an extra $1,400.
You will not get Letter 6475 if you believe you should have gotten a third stimulus check but did not. To check the amount of your Economic Impact Payments, you’ll need to create an IRS online account. You can claim the recovery rebate tax credit on your 2021 tax return if you certify you didn’t receive a third stimulus check and are qualified.
You’ll also need the evidence to claim any additional money from an adjusted recovery credit if the IRS calculated your third stimulus payment on your 2019 or 2020 taxes, but you made less money in 2021.
Here’s how to make sure you get every penny of stimulus money you’re entitled to. Also, find out when to file your taxes in 2021 and how to obtain the balance of your enhanced child tax credit money in 2022.
What Is the Purpose of Letter 6475 From the Internal Revenue Service?
Important information about your tax return can be found in the Economic Impact Payment letters, the IRS says. They include your name and address, as well as the total amount of your third stimulus payment.
As an example, the “plus-up” payments, which are extra funds the IRS sends to people who are eligible for more money based on their tax returns for 2019 or 2020 could be included. People could also get information about their Social Security, Veterans, or Railroad Retirement Board benefits, for example.
You may have already gotten a Letter 1444-C detailing the amount you were paid and how it was sent, but this isn’t the document you’ll need to file your 2021 return.
Is the Letter Truly Necessary to Keep?
According to Mark Steber, chief tax information officer at Jackson Hewitt, you should always keep tax-related documents: W2s, interest statements, and IRS letters are useful records of your account, he adds, “in case something comes up in the following two or three years.”
“It’s always essential, but it’s really critical if you’re due extra money,” Steber told CNET. “Especially if you had a new kid, adopted a child, fostered a child, or it’s your year for split joint custody or any number of other life events.” “An extra payment would be appropriate in each of these circumstances.”
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What Am I Going to Do About Letter 6475?
Keep it until you or your tax preparer is ready to file your 2021 federal return, then use the amount on your Recovery Rebate Worksheet to see whether you qualify for a credit.
According to the H&R Block website, “having the wrong amount on your return might prompt a manual review,” which could take weeks to complete.
What Happens if I Am Unable to Locate My Letter?
If you don’t get (or misplace) Letter 6475, you can access information about your stimulus payments through your IRS account. You can establish an ID.me account on the IRS website to validate your information if you don’t already have one.