Only a few hours are left for you to secure your $1,400 recovery stimulus check from the IRS—act now or risk losing your money forever.
Time is running out, and over one million individuals could miss out if they don’t complete the required form.
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This initiative was established for individuals who did not receive their tax refund due to not filing their return in 2021.
The full $1,400 will either be subtracted from the taxes owed for 2021 or included as part of your overall refund.
The Recovery Rebate Credit is created to provide taxpayers who missed one or more Economic Impact Payments, or stimulus checks, the chance to receive a refundable credit.
Claiming ends on April 15.
The US Sun previously reported on this payment, intended to assist working Americans to ensure the IRS provides proper compensation.
IRS Commissioner Danny Werfel stated: “The IRS is dedicated to enhancing services and assisting taxpayers.”
“These payments exemplify our commitment to going the extra mile for taxpayers.”
“Our internal data indicates that one million taxpayers failed to claim this complicated credit, even though they were eligible.”
“To ease the process and deliver this financial support to qualified taxpayers, we’re making these payments automatic. These recipients won’t have to endure the lengthy process of filing an amended return to receive their funds.”
This credit is being distributed in three phases, with the first two already completed.
The first distribution of checks was automatically sent out in December, followed by the second in late January.
MAKE MONEY
It’s crucial to understand that there are elements on the 2021 tax form that influence your payment amount.
Your adjusted gross income (AGI) plays a significant role in determining the amount you receive.
A higher income generally results in a smaller rebate than someone with a lower one.
If your income exceeds $160,000, for instance, you won’t qualify for any rebate credit.
Majority of Americans Plan Their Tax Refund Spending Half a Year in Advance
A recent study by Talker Research revealed that a third of Americans strategize on how to use their tax refunds six months ahead of time.
The poll of 2,000 U.S. taxpayers showed that 79% anticipate receiving a refund this year, many of whom have already outlined their spending plans.
A majority (52%) consider their tax refund a vital component of their budgeting, with 77% planning to use it for essential expenses.
Top necessities include bills such as rent (52%), groceries and essential items (44%), and credit card debt (37%).
More than half (56%) of those addressing credit card debt specifically aim to tackle their holiday purchases.
Meanwhile, 8% are eyeing luxury purchases.
They intend to spend their refunds on items like new clothes (37%), entertainment (28%), and new phones (26%).
Commissioned by TaxSlayer and conducted by Talker Research, the survey found that the average taxpayer hopes to receive around $1,700 this year.
22% believe they’ll get a larger refund than last year, while 26% expect less. Half (51%) anticipate a similar amount.
Last year, 12% reported receiving a larger-than-expected refund, while 20% said they got less than anticipated.
Respondents expecting more credits attributed it to withholdings on their W-2, increased earnings, and having a newborn.
Conversely, those expecting less cited reasons such as job loss, owing back taxes, children reaching adulthood, and higher tax rates.
Survey by Talker Research.
Your filing status, similar to your standard tax return, affects your credit eligibility.
Couples filing jointly with a combined AGI of $150,000 or less in 2021 can get up to $2,800 from the Recovery Rebate Credit.
For many, this tax season has been filled with confusion and anxiety, but the recovery rebate credit is here to finally provide what is owed.
There are various methods to file a tax return, such as using an online account or submitting a paper form.
Failing to submit your 2021 tax return by April 15 means no further opportunity to claim your funds.
