9 Million Households May Qualify For Unclaimed Stimulus Checks

Date:

Illustration of the federal stimulus payment check with a stack of cash surrounding the payment

The Internal Revenue Service plans to send letters to more than 9 million individuals and families who are eligible for various tax breaks but have not claimed them by filing a 2021 federal income tax return. Those who qualify in this group can claim part or all of the 2021 Recovery Rebate Credit (RRC), the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC) and other tax credits, depending on their personal and family situation. The Tax and Customs Administration will send out these special reminder letters in the coming weeks.

“The IRS wants to remind potentially eligible people, especially families, that they may be eligible for these valuable tax credits,” said IRS Commissioner Chuck Rettig. “We encourage people who have not yet filed their 2021 tax returns to look into these options. Even if they don’t have to file a tax return, they can still qualify for several important credits. We don’t want people to overlook these tax credits, and the letters will remind people that they may be eligible and what steps they can take.” These and other tax breaks have been expanded under last year’s American Rescue Plan Act and other recent legislation. The only way to get the stimulus check is to file a 2021 tax return, even if they haven’t been required to file in recent years. Often individuals and families can get these extensive tax breaks even if they have little or no income.

The Treasury’s Office of Tax Analysis identified individuals who are typically not required to file taxes because they appear to have very low incomes, based on W-2 1099 forms and other third-party statements available to the IRS. This is part of an ongoing effort to give people their rightful tax credits and refunds. People can file a tax return even if they have not yet received their letter, as there is no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline. to get a refund is by filing an electronic return and opting for direct deposit.

People can also go to ChildTaxCredit.gov to file a 2021 income tax return. Individuals with incomes less than $12,500 and couples with incomes less than $25,000 may be able to file a simple tax return to claim the 2021 Recovery Rebate Credit – which covers any stimulus payments from 2021 they may have missed – and the Child Tax Credit. Individuals do not have to have children to use Get Your Child Tax Credit to find the right filing solution for them.

The three credits include:

  • An extended tax credit for children: Families can claim this even if they received monthly advances in the last half of 2021. The total credit can be up to $3,600 per child.
  • A more generous Earned Income Tax Credit for childless employees. There are also changes that can help low- and middle-income families with children. The credit can go up to $1,502 for employees with no qualifying children, $3,618 for those with one child, $5,980 for those with two children and $6,728 for those with at least three children.
  • The Recovery Credit Credit: For those who missed last year’s third round of stimulus checks, this credit can also help eligible people whose Economic Impact Payments (EIP3) were less than the full amount, including those who welcomed a child in 2021 . the maximum credit is $1,400 for each eligible adult, plus $1,400 for each eligible child or dependent adult.

In addition to these three points, many filers may also qualify for two other benefits with a tax return filed before 2021:

  • An increased child and dependent care credit: Families who pay for childcare so they can work or find work can get a tax credit worth up to $4,000 for one eligible person and $8,000 for two or more eligible persons.
  • A deduction for charitable donations: Most tax claimants who take the standard deduction can deduct eligible cash contributions they made in 2021. Married couples filing jointly can deduct up to $600 in cash donations, and individuals can deduct up to $300 in donations. Additionally, itemizers making large cash donations are often eligible to deduct the full amount in 2021.


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related