During the first 18 months of the epidemic, the federal government issued three rounds of stimulus checks to the vast majority of Americans to alleviate the financial burden of covid-19.
The IRS has confirmed that all first, second, and third payments, also known as Economic Impact Payments, have been distributed, but not everyone who is qualified has received one. The IRS could not make the payment in some circumstances because it did not have the necessary information on file for some low-income households.
Those who have missed a payment or have received less than their full entitlement may be eligible for back pay in a Recovery Rebate Credit on their federal tax return in 2020 or 2021. Even though the tax deadlines for 2020 and 2021 have gone, the IRS allows filers up to three years from the return’s due date to file and get a tax credit refund.
“This means you can file your return and receive your Recovery Rebate Credit until April 15, 2024,” says Mark Steber, chief tax information officer at Jackson Hewitt.
Most eligible people already received their Economic Impact Payments. However, anyone missing stimulus payments should check their eligibility and whether they need to claim a Recovery Rebate Credit from the #IRS. Get started at https://t.co/BWrOo3gfCP pic.twitter.com/TpHMm61B7E
— IRS Small Biz (@IRSsmallbiz) April 17, 2022
How do you go about getting a Recovery Rebate Credit?
It’s not too late in submitting a tax return for 2020 or 2021 if you believe you missed out on a stimulus check payment distributed during either of those tax years. Even if your household income implies you are generally not compelled to do so, you will need to file a tax return with the IRS.
You can file a late tax return the same way you would have filed it before the deadline, online or by mail.
On the other hand, the IRS highly encourages filers to use the e-filing online site, which will expedite the processing of their returns and ensure that they receive the Recovery Rebate Credit as soon as possible.
Remember that the first two stimulus cheques were issued in the fiscal year 2020, and the third in the fiscal year 2021. You must claim the missing payments on your tax return for the relevant year in order to get the payout.
This procedure can be used to claim other tax credits that you may have missed out on, such as the Earned Income Credit.
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