This Is Your Last Chance to Receive a Third Stimulus Check.
There is still time for individuals to claim a third stimulus payment worth up to $1,400.
Taxpayers who did not receive the payment or who may be owed more money than they initially received may claim a tax credit on their 2021 federal income 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 sent via check. The payments were authorised by the American Rescue Plan in March 2021 and were intended to assist individuals 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. In 2021, if a taxpayer’s income or family size changes, the taxpayer may be eligible for additional funds.
Others may have missed out entirely on the stimulus payment. Those with incomes so low that they are not required to file taxes may have never received their payment because the IRS did not have their information.
What is the value of the payments?
Up to $1,400 per person is available in the third round of stimulus payments. For example, a married couple with two children may receive a maximum of $5,600.
Families may receive up to $1,400 for each dependent, regardless of age. Previously, payments were restricted to dependents under the age of 17.
In general, low- and middle-income US citizens and permanent residents of the United States are eligible for a third-round stimulus payment in full or in part.
Individuals with an adjusted gross income of less than $75,000, heads of households (such as single parents) with an adjusted gross income of less than $112,500, and married couples with an adjusted gross income of less than $150,000 are eligible to receive the full $1,400 per person.
However, as household income increases, the payments gradually phase out. Individuals with an adjusted gross income of at least $80,000, heads of households with an adjusted gross income of at least $120,000, and married couples with an adjusted gross income of at least $160,000 are not eligible for assistance – regardless of how many dependents they have.
Payments are not available to undocumented immigrants who do not have Social Security numbers. However, as long as they have Social Security numbers, their spouses and children are eligible.
Who may be eligible for additional funds?
Taxpayers who earned less money in 2021 than they did 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 jointly 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 added a child in 2021 – whether through birth, adoption, or foster care – may qualify for additional funds. Families may also be eligible if they added another type of dependent, such as an ageing parent or grandchild.
Individuals who believe they are entitled to additional funds must file a 2021 tax return, even if they do not normally file taxes, and claim what is known as the Recovery Rebate Credit. If a taxpayer is eligible for additional funds, the additional funds will either be used to reduce the taxpayer’s tax liability for 2021 or will be included in a tax refund.
To claim the Recovery Rebate Credit, a taxpayer must have received information from the IRS in the last couple of months via letter. The letter, referred to as 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 the majority of taxpayers, though it is a day later for residents of Maine and Massachusetts. Individuals who are unable to meet the deadline may file Form 4868 for an automatic six-month extension.