There is still time to apply for a third stimulus payment of up to $1,400 per person.
Eligible taxpayers who did not receive the payment or who may be due more money than they originally received may claim a tax credit on their 2021 federal tax return by the April 18 deadline.
Last spring, the vast majority of the third stimulus payments were automatically deposited into taxpayers’ bank accounts or mailed to them. The payments were authorised by the American Rescue Plan in March 2021 and were intended to assist people who were experiencing financial hardship as a result of the Covid-19 pandemic.
However, last year’s payments were calculated using the most recent federal tax return on file at the time. If a taxpayer’s income or family size changes in 2021, he or she may be eligible for additional funds.
Others may have missed out on the stimulus payment entirely. Those with incomes so low that they do not have to file taxes may not have received their payment because the IRS did not have their information.
What are the payments worth?
The third round of stimulus payments could amount to up to $1,400 per person. A married couple with two children, for example, is eligible for up to $5,600.
Families can receive up to $1,400 for each dependent, regardless of age. Earlier rounds of payments were restricted to dependents under the age of 17.
Low- and middle-income US citizens and US resident aliens are generally eligible for a full or partial third-round stimulus payment.
Individuals with an adjusted gross income of less than $75,000, heads of households (such as single parents) with an income of less than $112,500, and married couples with an income of less than $150,000 are eligible for the full amount of $1,400 per person.
The payments, however, gradually phase out as household income rises. Individuals earning at least $80,000 in adjusted gross income per year, heads of households earning at least $120,000, and married couples earning at least $160,000 are ineligible for assistance, regardless of the number of dependents they have.
Payments are not available to undocumented immigrants who do not have Social Security numbers. However, their spouses and children are eligible if they have Social Security numbers.
Who might be eligible for more funds?
Taxpayers who earned less money in 2021 than the previous year may be eligible for more money from the third round of stimulus payments than they initially received.
According to the IRS, these individuals include single filers who earned more than $80,000 in 2020 but less than this amount in 2021; married couples who filed a joint return and earned more than $160,000 in 2020 but less than this amount in 2021; and head of household filers who earned more than $120,000 in 2020 but less than this amount in 2021.
Individuals and families who welcomed a child in 2021 through birth, adoption, or foster care may be eligible for additional funds.
Families who have added another type of dependent, such as an ageing parent or grandchild, may be eligible as well.
Here’s how to claim it on your tax return.
Those who believe they are entitled to more money must file a 2021 tax return, even if they do not normally file taxes, and claim the Recovery Rebate Credit. If a taxpayer is eligible for more money, it will either be deducted from any taxes owed in 2021 or included in a tax refund.
A taxpayer will need information that was sent in a letter from the IRS in the last few months in order to claim the Recovery Rebate Credit. Letter 6475 confirms whether or not a taxpayer received a third stimulus payment and the amount. Alternatively, you can obtain this information by logging into your IRS online account.
The federal tax return filing deadline is April 18 for most taxpayers, though it is a day later for residents of Maine and Massachusetts.
Taxpayers who are unable to meet the deadline can file Form 4868 for an automatic six-month extension.