The American Rescue Plan Act was signed into law by the Biden administration in 2021. Americans became eligible for $1,400 stimulus checks as well as expanded Child Tax Credit payments if they had eligible children as a result of this Act.
Over the course of the year, the stimulus checks and a portion of the Child Tax Credits were deposited directly into the bank accounts of the majority of eligible Americans.
However, not everyone received all of their stimulus funds. However, the good news is that it is not too late to correct this. By filing a 2021 tax return, unclaimed stimulus payments and tax credits can be collected.
Those who are owed money, however, will need to understand the process for claiming it, and the IRS announced on April 13, 2022, that it had issued new guidance addressing critical issues that could affect the process for obtaining remaining payments. What you need to know about the IRS’s new information.
The IRS has updated its frequently asked questions about claiming stimulus funds.
According to a press release issued by the Internal Revenue Service on April 13: “The majority of eligible individuals have already received their Economic Impact Payments and will not include information about them in their filing. Individuals who are behind on stimulus payments, however, should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they should file a Recovery Rebate Credit claim for tax year 2021.”
The IRS recently updated this information on the Recovery Rebate Credit page. The IRS modified the responses to the first, fifth, eighth, and ninth questions in Topic F of its frequently asked questions page aimed at assisting taxpayers with stimulus payment issues.
The FAQ document’s Section F is titled “Receiving the Credit on a 2021 Tax Return.” This means that the updated information is directly applicable to individuals who will be filing their taxes by the upcoming April deadline in order to receive unpaid stimulus funds. The questions that have been modified address a variety of issues, including the following:
- When and how stimulus funds that have not been repaid will be repaid
- Whether processing tax returns will take longer when stimulus money is claimed
- How to obtain a replacement stimulus payment if the original check was lost, stolen, or destroyed
- Requesting a payment trace in order to ascertain the status of stimulus funds that have not been paid
With the tax deadline rapidly approaching and many people intending to file taxes this year in order to claim stimulus funds – even if they do not normally file returns – it will be critical for tax filers to carefully review these FAQs.
By following IRS guidance, taxpayers can ensure they do everything possible to receive their stimulus payments as quickly as possible and in full.