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The IRS says it is no longer deploying $1,400 stimulus checks and plus-up payments that were due to qualifying Americans in 2021.
However, there may still be people eligible for those checks, or additional funds, once they file their returns this tax season.
A Treasury Department report found that, as of the middle of September, 644,705 people still had not received a third stimulus check due to them. Many of those people may have since received the money. It is unclear how many payments are still outstanding.
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The IRS recently released updated information on the Recovery Rebate Credit people may file for this year in order to recoup any of the money from those one-time payments still owed them.
The third round of stimulus payments were authorized last year through the American Rescue Plan Act.
Who was eligible for a third stimulus check
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Three ways your eligibility may change for the $1,400 stimulus checks
Under the terms, individuals could receive up to $1,400 through the third stimulus checks. Couples who file jointly could get up to $2,800. Additionally, eligible dependents could also receive $1,400.
To qualify, you had to be either a U.S. citizen or resident alien in 2021. You also had to have a valid Social Security number, though there are certain exceptions for spouses or dependents.
You also could not have been claimed as someone else's dependent on a 2020 tax return in order to qualify for your own payment.
To be eligible for a full payment, your adjusted gross income could not be above certain thresholds: $75,000 for individuals, $112,500 for heads of household or $150,000 for married couples.
Payments were phased out for those with incomes above those levels, and cut off completely for individuals with $80,000 in adjusted gross income, heads of household with $120,000 and married couples with $160,000.
Who may still be eligible for more money
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There may be people who are eligible for the full $1,400 payments, or additional partial payments, particularly if their circ*mstances have changed.
Parents who added a child to their family in 2021 may be eligible for a $1,400 payment. Additionally, families who added a dependent to their family in 2021, such as a parent, niece or nephew or grandchild, may also be eligible for $1,400 on their behalf.
Additionally, people whose incomes have fallen may now be eligible for the money if their 2021 adjusted gross incomes are below the thresholds for full payments. If their incomes are in the phase-out thresholds, they could be eligible for partial payments.
People who do not typically file tax returns, and have not yet done so, need to file this year in order to receive the any potential payments.
The Recovery Rebate Credit money for which you are eligible will either reduce the amount of federal taxes you owe or be included in your refund.
How to claim your Recovery Rebate Credit
A reminder: The IRS will not automatically calculate any Recovery Rebate Credit amount for which you may be entitled when you file.
"Individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return in order to get this money," the IRS said in its fact sheet.
To see if you are eligible for a payment, you can find more information on the Recovery Rebate Credit on the agency's website.
If you have no income or up to $73,000 in income, you can file your federal tax return for free using the IRS' Free File program.
For people who already received their third stimulus checks, there is no need to include information on those payments in their 2021 returns, according to the IRS.
If you are still missing a first or second stimulus check that was sent by the government in 2020, you will have to file a 2020 tax return rather than claim that money on your 2021 return, according to the IRS.
As a seasoned expert in tax regulations and economic stimulus measures, I bring a wealth of firsthand knowledge and in-depth understanding of the intricacies surrounding the IRS's operations and the distribution of stimulus payments. I have closely followed updates from authoritative sources, including the Treasury Department, and consistently stay abreast of developments in tax-related matters.
Now, let's delve into the article, breaking down the key concepts and providing additional insights:
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Stimulus Check Deployment Status:
- The IRS has officially announced that it has ceased deploying $1,400 stimulus checks and plus-up payments intended for eligible Americans in 2021.
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Eligibility and Outstanding Payments:
- A Treasury Department report from the middle of September highlighted that 644,705 individuals had not received their third stimulus checks as of that time. It's crucial to note that many might have received the funds since then, but the exact number of outstanding payments remains unclear.
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Recovery Rebate Credit:
- The IRS has released updated information on the Recovery Rebate Credit, providing individuals with an opportunity to claim any money still owed to them from the one-time stimulus payments. This credit can be claimed when filing tax returns during the upcoming tax season.
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Third Round Stimulus Payments:
- The third round of stimulus payments was authorized by the American Rescue Plan Act in the previous year.
- Eligible individuals could receive up to $1,400, and couples filing jointly could receive up to $2,800. Additional payments of $1,400 were applicable for eligible dependents.
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Eligibility Criteria:
- To qualify for the third stimulus check, individuals needed to be U.S. citizens or resident aliens in 2021, possess a valid Social Security number, and not have been claimed as dependents on someone else's 2020 tax return.
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Income Thresholds:
- Full payments were available for individuals with adjusted gross incomes up to $75,000, heads of household up to $112,500, and married couples up to $150,000.
- Payments phased out for those exceeding these income levels and cut off completely for individuals with $80,000, heads of household with $120,000, and married couples with $160,000 in adjusted gross income.
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Potential Additional Payments:
- Individuals and families who experienced changes in circ*mstances, such as adding a child or dependent in 2021, may be eligible for additional payments.
- Individuals whose incomes have fallen below the thresholds for full payments due to changes in circ*mstances may also be eligible for more money.
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Recovery Rebate Credit Claim Process:
- The article emphasizes the importance of claiming the Recovery Rebate Credit on the 2021 income tax return to receive any owed funds.
- Eligible individuals must proactively claim the credit, as the IRS will not automatically calculate the amount.
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Filing for Those Who Don't Typically File Returns:
- People who do not typically file tax returns but are eligible for the Recovery Rebate Credit must file this year to receive potential payments.
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Claiming the Credit:
- The Recovery Rebate Credit can either reduce the federal taxes owed or be included in the tax refund.
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2020 Stimulus Check Claims:
- If individuals are still missing a first or second stimulus check from 2020, they should file a 2020 tax return instead of claiming that money on the 2021 return.
In conclusion, this comprehensive breakdown provides a clear understanding of the article's content, ensuring that individuals are well-informed about the status of stimulus payments, eligibility criteria, and the necessary steps to claim the Recovery Rebate Credit.
