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The IRS has issued all third-round stimulus payments to eligible Americans, the agency said Wednesday. However, new parents and other beneficiaries who added dependents in 2021 may still be eligible for additional funds.
The payments, up to $1,400 per person, were authorized by the American Rescue Plan Act, a pandemic relief bill passed by Democrats in March.
The IRS also issued two other economic impact payments (up to $1,200 and $600) that were authorized by previous bipartisan relief programs.
Eligibility and total funds received by households were based on income and other requirements.
Some $1,400 in payments can still be mailed, but the IRS is no longer issuing first-, second-, or third-round funds, the agency said. The IRS has issued more than 175 million third-round payments to households worth more than $400 billion through Dec. 31.
Who is entitled to more?
However, some households will be eligible for additional round three funds when they file their 2021 tax returns this year. This is true for those whose situation changed in 2021 compared to 2020.
For example, children born in 2021 are eligible for an additional payment of up to $1,400, which parents did not receive last year.
Families who added a dependent (such as a parent, nephew, niece or grandchild) on their 2021 tax return and who were not listed as a dependent on their 2020 return may also be eligible , said the IRS.
Most of the other eligible people have already received the full third-round amount and will not be eligible for more, the agency said.
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Families can recoup additional stimulus payments on their tax return by claiming the 2021 Recovery Rebate Credit. (Stimulus checks are technically an advance payment of the Recovery Rebate Credit.)
Tax season started Monday and ends April 18 for most people.
To claim the 2021 recovery rebate credit, individuals need to know how much money they received in total round three stimulus payments.
This information is available through their online IRS account or via letter 6475, which the agency is mailing through March to those who received third-round payments. (Married people filing a joint tax return will need to determine their individual information and add it together.)
The IRS is urging taxpayers to file an accurate electronic return to speed up processing and get a faster refund. Errors or incomplete returns require further review, which could lead to delays, the agency warned.
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