In a statement on Thursday, Jan. 26, the IRS announced that it has sent out all third-round Economic Impact Payments.
The remaining stimulus money that people owe can still be claimed on their 2021 tax returns as part of the 2021 Recovery Rebate Credit, according to Yahoo.
There may still be some Economic Impact Payments mailed from 2021, which were advance payments for the 2021 Recovery Rebate Credit, but the IRS is no longer releasing payments as required by law.
Throughout December, the IRS sent over 400 billion dollars in payments to individuals and families.
The IRS began sending the third-round Economic Impact Payment recipients Letter 6475, Your Third Economic Impact Payment, in late January.
You can use the letter received to determine whether you should claim the Recovery Rebate Credit on your 2021 tax return.
Because of differences in circumstances in 2021 compared to 2020, some families may not have received the full amount of their Economic Impact Payment for the third time. Among the reasons for this are:
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- The credit may be available to parents or guardians with a new qualifying child added to their family in 2021 who didn’t already receive an Economic Impact Payment from the third round for that child.
- If a family adds a dependent, they may qualify for a $1,400 Recovery Rebate Credit in 2021.
- Income exceeding $80,000 in 2020 but less than that for 2021 for single filers. The threshold in jointly filed tax returns is $160,000. For heads of households, it is $120,000. The maximum amount per eligible person is $1,400.
- A single earner with a 2020 income of $75,000 – $80,000, but with a lower income in 2021. A married couple filing jointly with an income between $150,000 and $160,000. For heads of households, an income between $112,500 and $120,000. The 2021 Recovery Rebate Credit may apply to these eligible individuals.
Tax returns for 2021 begin being accepted on Jan. 24 and you must claim the 2021 Recovery Rebate Credit on your income tax return for 2021 to receive this amount.
To claim a credit, you need to know how much they received from their third-round Economic Impact Payment, including any Plus-Up Payments.
You can view this amount in your IRS Online Account and IRS Letter 6475.
In the case of married couples filing jointly, both of you will need to log into your Online Accounts or review your respective letters.
