QUALIFIED Americans can obtain stimulus checks of up to $1,400, but the deadline is nearing.
The IRS has indicated that over 1.1 million taxpayers are still eligible to claim stimulus checks from the pandemic relief initiative.
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The IRS is automatically issuing stimulus checks to individuals who did not claim the Recovery Rebate Credit on their 2021 tax filings.
These payments aim to assist working Americans.
The Recovery Rebate Credit enables taxpayers who missed one or more Economic Impact Payments, or stimulus checks, to receive a refundable credit.
While the deadline to claim the credit for the first and second stimulus checks has passed, those 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.
More on stimulus checks
STIMULUS checks have been credited to the bank accounts of Americans since the onset of the coronavirus crisis.
This allowance will either reduce the tax liability for 2021 or be distributed as part of the taxpayer’s refund.
The taxpayer’s adjusted gross income (AGI) will determine the amount received.
This amount diminishes as income rises.
Married couples filing jointly with a total AGI of $150,000 or less in 2021 can qualify for up to $2,800 from the Recovery Rebate Credit.
However, the credit is phased out completely for individuals earning $160,000 or more.
Dependents eligible for the $1,400 credit in 2021 are not age-restricted.
The credit remains subject to the same phase-out limits.
The IRS has announced that by the end of 2024, stimulus payments will be distributed after discovering that many eligible taxpayers failed to claim the Recovery Rebate Credit on their 2021 returns.
The IRS has also notified individuals who have yet to file their 2021 tax returns that they may still qualify for the payment.
To obtain the credit, they must file by the April 15 deadline, even if their income was low or nonexistent.
IRS Commissioner Danny Werfel stated that the agency is working to enhance services and is making the payments automatic to relieve taxpayers from the need to amend their returns.
The automatic payments commenced in late December 2024, with the expectation of reaching most recipients by late January 2025.
Payments will be dispersed via direct deposit or paper check, sent to the bank account or address listed on the taxpayer’s 2023 return.
Qualifying individuals will also receive a separate letter informing them of their payment.
The IRS will continue to distribute payments as it processes 2021 tax returns.
