There’s still time to claim a third stimulus payment worth up to $1,400 per person.
Eligible taxpayers who did not receive the payment or who may be due to receive more money than they originally received are allowed to claim a tax credit on their 2021 federal income tax return before the deadline. of April 18.
The vast majority of the third stimulus payments were automatically paid into taxpayers’ bank accounts or via a check mailed last spring. The payments were authorized by the American Rescue Plan in March 2021 and were intended to help people in financial difficulty due to the Covid-19 pandemic.
But the payments were calculated last year based on the most recent federal tax return on file at the time. If a taxpayer’s income or family size changed in 2021, the person may be eligible for more money.
Other people may have missed the stimulus payment entirely. Those whose income is so low that they don’t have to file a tax return may never have received their payment because the Internal Revenue Service did not have their information.
The third round of stimulus payments are worth up to $1,400 per person. A married couple with two children, for example, can receive a maximum of $5,600.
Families are eligible to receive up to $1,400 for each dependent of any age. Previous cycles limited payments to dependents under the age of 17.
Typically, low- to middle-income U.S. citizens and U.S. resident aliens Is eligible for a full or partial third-round stimulus payment.
Individuals earning less than $75,000 in adjusted gross income, heads of households (such as single parents) earning less than $112,500, and married couples earning less than $150,000 are eligible to receive the full amount of $1,400 per person.
But the payments gradually disappear as household income increases. Individuals who earn at least $80,000 per year in adjusted gross income, heads of households who earn at least $120,000, and married couples who earn at least $160,000 are not eligible for any money, regardless of or the number of dependents.
Undocumented immigrants who do not have a Social Security number are not eligible for payments. But their spouses and children are eligible as long as they have social security numbers.
Taxpayers who made less money in 2021 than the year before may be eligible for more money than they initially received from the third round of stimulus payments.
These include single filers who had incomes above $80,000 in 2020 but below that amount in 2021; married couples who filed a joint return and had incomes above $160,000 in 2020 but below that amount in 2021; and reporting household head who had incomes greater than $120,000 in 2020 but less than that amount in 2021, according to the tax authorities.
The people and families who added a child in 2021 – through birth, adoption or foster care – could be eligible for additional funds. Families who have added another type of dependent, such as an aging parent or grandchild, may also be eligible.
Those who think they’re entitled to more money should file a 2021 tax return, even though they don’t typically file taxes, and claim what’s called the recovery refund credit. If a taxpayer is entitled to more money, it will reduce any tax the person must for 2021 or be included in a tax refund.
In order to claim the recovery rebate credit, a taxpayer will need information that was sent in a letter from the IRS within the last two months. Known as letter 6475, it confirms whether a taxpayer has received a third stimulus payment and the amount. Alternatively, this information can be obtained by accessing your IRS online account.
For most taxpayers, the deadline for filing the federal tax return is April 18, though it’s a day later for residents of Maine and Massachusetts. Taxpayers who are having difficulty meeting the deadline can apply for an automatic six-month extension using Form 4868.