Friday, January 28, 2022

Didn’t get the last round of stimulus check? It’s not too late to claim it.

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Don’t be discouraged if you didn’t receive the previous stimulus check.

If you’re eligible, you still have time to apply for the money.

The $1.9 trillion American Rescue Plan, which was signed into law in March 2021, included the third round of stimulus payments to Americans. As part of the Covid-19 epidemic relief, millions of Americans and their dependant children were handed up to $1,400 starting that month.

The IRS has until December 31 to send the cheques to people who were eligible. If you haven’t received your payment or received less than you were entitled to, you can use the Recovery Rebate Credit to claim the money on your 2021 tax return.

“Even if you don’t regularly submit a tax return, you’ll need to file a 2021 tax return if you’re eligible,” the IRS stated in a statement. The IRS had sent more than 171 million payments totaling $400 billion to Americans as of July.

If you believe you are qualified for the Recovery Rebate Credit, you must demonstrate how much stimulus money you received in 2021, if any, as well as how much the IRS should have sent you.

People who received 2021 economic impact payments will get a letter, Letter 6475, from the agency to assist with this calculation. The letter will state how much funds you received, as well as any “plus-up” money received throughout the year.

Using the IRS Form 1040 Recovery Rebate Credit Worksheet or an online tax software application, you’ll need this information to figure out how much money you’ll get.

Because candidacy for the 2021 stimulus checks was decided using either 2020 or 2019 tax returns, if your income dropped and you didn’t receive the full amount you were promised, you could get more money. The extra cash will either be used to outstanding taxes, lower your bill, or refunded to you as a refund.

You can also use the Recovery Rebate Credit to collect your child’s stimulus check if they were born in 2021. If you weren’t receiving the monthly advance payments that started in July, you might be able to claim the entire child tax credit.

Who is eligible to participate?

In 2021, the income thresholds for receiving a stimulus payment changed.

The full amount of the latest stimulus payment went to people with an adjusted gross income of $75,000 or $150,000 for married couples filing jointly.

Even if you earned more in 2021 if your income was less than $80,000 or $160,000 if married and filing jointly, you could still claim a portion of the money.

Of fact, some persons received stimulus funds with the expectation of a return in 2020, only to make more in 2021. Even if you earn more in 2021 than the phase-out amounts, you will not be required to repay the money you received.

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