The American Rescue Plan Act was signed into law more than a year ago to provide stimulus funds to individuals and families still suffering from the coronavirus’s ongoing effects. However, not everyone has received the payments made possible by this COVID-19 relief legislation.
The IRS is urging those who did not receive all of the money they were due to take immediate action. It is critical to follow the Internal Revenue Service’s advice in order to obtain money that you are owed, as you may be entitled to thousands of dollars.
The IRS wishes to ensure that taxpayers receive their stimulus funds.
On April 19, 2022, the IRS issued a news release addressing the issue of unpaid stimulus funds. The agency wanted to specifically remind taxpayers to claim the expanded Child Tax Credit.
This expanded Child Tax Credit was one of several forms of stimulus aid authorized by the American Recovery and Reinvestment Act. The existing Child Tax Credit was increased from $2,000 to $3,600 for children under the age of six and from $3,000 to $3,000 for older children. While the original rules allowed for a refund of up to $1,400 of the credit, the American Rescue Plan Act made the entire credit refundable. Additionally, it provided for the payment of half of the credit amount between July and December. These rules applied only to the fiscal year 2021.
However, not everyone received their money. and parents who received those monthly payments last year are still eligible for half of the expanded credit’s remaining funds. The IRS released a news release reminding parents to claim their funds and assuring taxpayers that it is not too late to claim their funds.
Although the deadline for filing taxes has passed, you can still claim your credit.
To claim unpaid stimulus funds, a 2021 tax return will be required. Although the deadline has passed, the IRS reiterated in a recent news release that it is not too late to submit your returns and claim your money.
“Families that owe no taxes to the IRS can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any time until April 15, 2025, without incurring any penalties,” the IRS stated in a release.
Although you have years remaining, you do not want to waste time obtaining these funds. Therefore, if you have not yet filed your 2021 tax returns, you should do so immediately. There are several free online filing tools available for submitting your tax forms; visit the IRS website to find one that works for you.