Did you know the folks overseeing the Internal Revenue Service (IRS) – namely, the Treasury’s Inspector General for Tax Administration – recently shed light on an eye-opening fact? A whopping 3 million Americans might have their slice of the $4.7 billion Recovery Rebate pie just sitting around. It’s hard to imagine, but here in our very own homeland, millions haven’t accessed the funds meant to cushion the blow from the 2021 Covid-19 economic aftermath.
Delving into the 2023 Disclosure An August 2023 paper unveiled something striking. The American Rescue Plan had seen our government doling out a massive $930 billion for direct financial aid. The breakdown? Two payments during Trump’s time at the helm: a cool $1,200 followed by $600. And not to be left behind, the Joe Biden Administration era saw an additional $1,400 doled out.
Could You Have an Unclaimed Stimulus Payment? $4.7 Billion Recovery Bonuses to Be Rolled Out
Here’s the real kicker: the TIGTA report points out that many of these 3 million folks did their 2021 tax duties but missed the Recovery Rebate Credit memo. To mend this oversight, come January 2022, the IRS played postman, sending out Letter 6475 via snail mail. This wasn’t junk mail – it was a heads-up about their rightful claim to the full $1,400 from the trilogy of payments.
The funds waiting for Americans to claim? They’re a part of what’s called the Recovery Rebate Credit, a brainchild of our trusty Internal Revenue Service.
What is the deadline for claiming the unclaimed stimulus payment?
According to the IRS, if you have not received your stimulus payments for tax year 2020 or 2021, you can claim them by filing your tax return for those years. This can be done by claiming a Recovery Rebate Credit on your tax return.
To claim a missing payment, you need to understand that the Economic Impact Payments applied to different tax years. Depending on whether you missed the first, second or third payment, you will need to file either a 2020 or 2021 tax return to claim a Recovery Rebate Credit.
Who is eligible for the unclaimed stimulus payment?
Wondering if you fit the bill for the unclaimed stimulus bonus? The Nitty-Gritty on Adjusted Gross Income (AGI) A full stimulus amount might be in the cards if your AGI is under:
- $75,000 for the solo flyers
- $112,500 for the household heads
- $150,000 for the lovebirds filing together
However, those earning a bit more see their potential amounts slimming down. Solo and separately-filing married folks with an AGI topping $80,000? You might be out of luck. House leaders have a $120,000 cap, and joined-at-the-hip couples? It’s a no-go past $160,000.
Filing Status and Eligibility If you call the U.S. home (either as a citizen or resident alien) and nobody claims you as a dependent, you might be in for a treat.
A Quick Word on Dependents Third-round stimulus cheer? It wasn’t just for the kiddos under 17. If 2021 brought the pitter-patter of tiny feet into your life, you could claim the Recovery Rebate Credit for your newest family member.
For those who felt shortchanged or missed out on their stimulus cash, the Recovery Rebate Credit could be your golden ticket on your 2020 or 2021 federal returns. Even if you’re not the tax-filing type, you might have to make an exception here.
Before you get too giddy, remember: previously pocketed stimulus payments will nibble away at your eligible credit sum. For a smoother ride, the IRS nudges you towards e-filing. Why? Your tax software becomes your guide in working out your Recovery Rebate Credit.
When’s The Last Call For Those Missed Stimulus Checks?
How to Snag That Unclaimed Cash If you’ve got a stimulus check floating around that you haven’t claimed yet, you’ll want to file a tax return and shout out for a Recovery Rebate Credit. When you need to step on it, though, hinges on which round of checks we’re chatting about.
The 411 on the First and Second Stimulus Checks Missed out on the full dough from either of the first two rounds? No sweat! Put in for a Recovery Rebate Credit on the 2020 tax return you file. While our friends at the IRS give you a friendly nudge to wrap up your 2020 paperwork before 2021 bows out, they’re also cool cats. They’ll let you take a breather and give you up to three spins around the sun from the return’s due date to settle up and bag that refund. So, mark your calendar: you’ve got until April 15, 2024.
What About the Third Stimulus Check? Now, if you’re talking about the third wave of checks and didn’t get the whole enchilada, listen up! You can make your claim for the 2021 Recovery Rebate Credit when you send in your 2021 tax return. The IRS, always looking out, suggests you button up that 2021 return before we bid adieu to 2022. But again, they’re pretty chill. They’ll give you a generous three-year window from when that return’s due to file and pocket that refund. So, your magic date? April 15, 2025.
What Is the Recommended Method for Claiming the Recovery Rebate Credit?
To claim any stimulus payment, first thing is to verify your eligibility. This involves being a U.S. citizen or legal alien resident, not being claimed as a dependent on someone else’s tax return, and having a Social Security number. In addition, you must make sure that you have not received the full amount of the Economic Impact Payments (EIPs) for which you were eligible.
Then, gather the necessary information, which includes the amounts of the Economic Impact Payments you received, your adjusted gross income (AGI) from your most recent tax return, and any additional income or deductions that may affect the credit. Next, file a federal tax return, even if you normally don’t, using IRS-approved tax software, a tax professional, or paper forms.
Complete IRS Form 1040 or 1040-SR depending on your age and filing status. Calculate the amount of the Recovery Credit using the information collected, and make sure to enter the credit correctly on your tax return. If possible, file your return electronically to speed up the process and receive any refunds you are owed. After you file your return, the IRS will process it and determine the amount of recovery credit you are entitled to. You can check the status of your return and refund by using the IRS’s Where’s My Refund tool on their website.
Don’t forget to keep copies of your tax return and related documents for future reference or audits. It’s important to note that the process for claiming the Stimulus Recovery Credit can change from year to year, so it’s a good idea to check the latest IRS guidelines and instructions or seek the help of a tax professional if you have questions or concerns.