ELIGIBLE Americans can obtain stimulus checks of up to $1,400, but the deadline is drawing near.
The IRS has indicated that over 1.1 million taxpayers still have the opportunity to claim stimulus checks from the pandemic relief initiative.
The IRS is automatically distributing stimulus payments to those who did not claim the Recovery Rebate Credit on their 2021 tax returns.
These funds are designed to assist working Americans.
The Recovery Rebate Credit enables taxpayers who missed one or more Economic Impact Payments (stimulus checks) to receive a refundable credit.
While the deadline to claim the credit for the first and second stimulus checks has passed, individuals who did not file a federal return in 2021 can still access funds from the third round of payments.
These taxpayers have until April 15 to submit their 2021 tax return and claim up to $1,400.
This amount will either reduce the taxes owed for 2021 or be included in the taxpayer’s refund.
The amount received by taxpayers is dependent on their adjusted gross income (AGI).
The amount decreases as income increases.
Married couples filing jointly with a total AGI of $150,000 or less in 2021 qualify for up to $2,800 from the Recovery Rebate Credit.
However, the credit is completely phased out for those with earnings of $160,000 or higher.
All dependents, regardless of age, qualified for the $1,400 credit in 2021.
Nonetheless, the credit is still subject to the same phase-out thresholds.
In late 2024, the IRS announced plans to issue stimulus payments following a review that revealed many eligible taxpayers failed to claim the Recovery Rebate Credit on their 2021 returns.
The IRS has also stated that individuals who haven’t filed their 2021 tax returns may still be eligible for the payment.
To receive the credit, they must file by the April 15 deadline, regardless of whether their income was low or nonexistent.
IRS Commissioner Danny Werfel mentioned that the agency is making efforts to enhance its services and is automating payments to avoid the need for taxpayers to amend their returns.
Automated payments began in late December 2024 and are expected to reach most recipients by late January 2025.
Payments will be processed via direct deposit or paper check, sent to the bank account or address indicated on the taxpayer’s 2023 return.
Eligible individuals will also receive a separate letter informing them of their payment.
The IRS will continue to issue payments as it processes 2021 tax returns.
