The IRS has announced that it would no longer distribute $1,400 stimulus cheques and plus-up payments to qualified Americans in 2021.
However, some individuals may still be entitled for those checks or additional monies after filing their tax returns this season.
According to a Treasury Department study, 644,705 persons have yet to get their third stimulus check as of mid-September. Many of those individuals may have received the funds since. It is unknown how many payments remain unpaid.
The IRS recently updated details on the Recovery Rebate Credit, which individuals may claim this year in order to recuperate any remaining funds from those one-time payments.
The American Rescue Plan Act allowed the third wave of stimulus funding last year.
Which individuals were eligible for a third stimulus check?
Three ways your eligibility for the $1,400 stimulus cheques may change
Individuals may get up to $1,400 through the third stimulus check under the terms. Couples filing jointly may be eligible for up to $2,800. Additionally, dependents who qualify may get $1,400.
To be eligible, you must be a United States citizen or resident alien in 2021. Additionally, you needed to have a valid Social Security number, however certain exclusions apply for spouses and dependents.
Additionally, you cannot have been claimed as a dependent on another person’s 2020 tax return in order to qualify for your own payout.
To qualify for the full payment, your adjusted gross income must exceed the following thresholds: $75,000 for individuals, $112,500 for heads of household, or $150,000 for married couples.
Individuals earning more than $80,000 in adjusted gross income, heads of household earning more than $120,000, and married couples earning more than $160,000 were phased out of payments.
Who might still be eligible for additional funds?
Certain individuals may qualify for the full $1,400 payment or additional partial payments, especially if their circumstances have altered.
Parents who had a child in 2021 may qualify for a $1,400 reward. Additionally, households that added a dependent in 2021, such as a parent, niece or nephew, or grandchild, may be eligible for an additional $1,400.
Additionally, individuals whose earnings have decreased may now be eligible for the money if their 2021 adjusted gross incomes fall below the full payment criteria. They may be eligible for partial payments if their incomes fall within the phase-out criteria.
Individuals who do not submit tax returns on a regular basis and have not yet done so must do so this year in order to receive any potential payments.
The amount of the Recovery Rebate Credit for which you are entitled will either be deducted from your federal tax liability or included in your refund.
How to Claim Your Credit for Recovery
A reminder: When you file, the IRS will not automatically compute the amount of any Recovery Rebate Credit to which you may be entitled.
“To receive this money, individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return,” the IRS stated in its fact sheet.
To see if you are qualified for a payment, visit the agency’s website for additional information on the Recovery Rebate Credit.
If you have no income or income up to $73,000, you can use the IRS’s Free File programme to file your federal tax return for free.
According to the IRS, taxpayers who have already received their third stimulus check are not required to include information about those payments on their 2021 forms.
If you have not yet received a first or second stimulus check provided by the government in 2020, the IRS advises that you must submit a 2020 tax return rather than claim the money on your 2021 return.