Stimulus checks: 9 million people have until November 17 to claim payments

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The IRS began warning 9 million people last month that they could still claim thousands in stimulus and child tax credits. If you’re one of those people, you only have one day left to claim the money, with the IRS setting a November 17 deadline to get the money.

The IRS said it began sending the letters in mid-October to reach millions of people who have not claimed benefits such as stimulus checks, the expanded child tax credit and the earned income tax credit.

Eligible people must file a tax form by Thursday, Nov. 17, to claim the money, the IRS said. The filing site will remain open until midnight ET on Thursday, the IRS said.

In disbursing billions of dollars in stimulus payments to keep households afloat financially during the pandemic, the IRS relied on tax returns to determine eligibility and where to send the payments, as tax returns contain bank account information or home addresses for sending the checks. . But according to the bureau, about 9 million Americans have yet to claim the money because they have not filed a 2021 tax return.

The IRS noted that eligible people can file a tax return even if they did not receive a letter. The agency added that there is no penalty for taxpayers who receive a tax refund, even if they file their application after the regular April 2022 tax deadline.

The letters contain information on how to claim the money, the IRS said.

Who gets the letters?

The IRS said the 9 million people identified by the Treasury’s Office of Tax Analysis are those who don’t have to file taxes because they have very low incomes. Single taxpayers under age 65 typically do not need to file a tax return if they earn less than $12,550 per year, for example, while for single people over age 65, that rises to $14,250.

What credits are available?

The people who received the letters may be eligible for one or more of the following tax credits:

  • The Recovery Discount Credit 2021
  • The child discount
  • The income tax credit earned

What is the Recovery Discount Credit 2021?

That’s the official name of the third round of stimulus checks approved by lawmakers during the pandemic, which provide up to $1,400 per eligible person, including eligible children claimed on a tax return.

That means a family of four could be eligible for up to $5,600 in stimulus money, assuming they earn below the income limit for the program. By law, the full amount is available to single taxpayers earning less than $75,000 and married couples earning less than $150,000.

Payments are phased out for people earning above those thresholds.

What is the child discount?

The enhanced child tax credit increased this benefit to $3,600 per child in 2021, compared to the normal amount of $2,000 per child. The tax credit is designed to help parents pay for the costs of raising children.

The IRS sent out monthly checks to parents with eligible children during the last six months of 2021, representing half of the annual credit. The IRS said families can now claim the other half of the credit, even if they received monthly checks in the second half of 2021.

What is the earned income tax credit?

The 2021 US bailout also boosted the Earned Income Tax Credit, which has been available for decades and is intended to help low-income workers. Prior to the legislation, childless workers between the ages of 25 and 64 could only get up to $538, but the pandemic law increased that to $1,502.

The law also increased the amount that can be claimed by working families with children, to $6,728 for parents with three children.

Most people can claim the EITC if they earn less than $21,430 for single taxpayers or $27,380 for married people filing jointly.

How do I apply for these benefits?

The IRS urges people who believe they qualify for the tax credits but have not yet filed a tax return to file with the IRS, even if they have not yet received a letter from the IRS. But the deadline for filing a return to claim these benefits is Thursday, November 17.

“The IRS is reminding people that there is no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline,” the IRS said.

There are a few ways people can claim the benefits:

  • Submit a declaration with Free File before November 17, 2022. Free File is available to people earning less than $73,000.
  • File a simplified tax return for 2021 through GetCTC before November 15, 2022.

The IRS said it is urging people to file their tax forms electronically and opt for direct deposit to get their tax credits as quickly as possible.

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.

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