If the Internal Revenue Service (IRS) sends you a letter, don’t be worried; it may be a reminder that you have a stimulus check that has to be claimed.
According to a mid-October IRS declaration, approximately 9 million Americans still owe the Earned Income Tax Credit, Child Tax Credit, and Stimulus Payments.
IRS Letters for Unclaimed Stimulus Checks
The IRS has delayed this year’s free filing tool deadline by one month, until November 17. You may still apply for the benefit and file a tax return through ChildTaxCredit.gov even if you don’t have any children.
The quick file tool expedites the process even for people who don’t file frequently, while those who miss the November deadline can still file a tax return for 2021. Taxpayers normally have three years to claim any credits for which they are eligible.
Many of those individuals originally did not get their payments since the IRS did not have their information on file from a recent tax return. People who earn very little or no money, for instance, are not required to pay taxes.
Even if they received monthly advance payments in the second half of 2021, they are still eligible for this benefit. The maximum credit for each child is $3,600. Individuals and families with low to moderate incomes can get tax breaks through the EITC.
Under the American Rescue Plan, the EITC was enhanced, raising the maximum benefit for individuals without children to $1,502. The credit is $3,618 for individuals who have one child, $5,980 for those who have two children, and $6,728 for those who have three or more children.
Each eligible adult will get a third stimulus check of $1,400, plus an extra $1,400 for each qualifying child or dependent adult. For married couples, the qualifying income threshold is $150,000 or less; for single taxpayers, it is $75,000 or less; and for taxpayers who are the head of the household, it is $112,500 or less.
The credit eventually vanishes over these thresholds. The IRS recommends anyone who is entitled to any of the three benefits file electronically in order to receive their money as quickly as possible.
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Stimulus Checks in States Are Still Available
READ MORE: Stimulus Check Update: Americans Have Until November 17 to Receive Unclaimed $1,400, $3,600
Several states will continue mailing payments through November and beyond even though a sizable portion of the stimulus payment has already been distributed. Below is a brief summary of the outstanding state stimulus payments:
California began making payments on October 7 that ranged from $200 to $1,050, but they will continue until January 2023. However, according to the state’s Franchise Tax Board, 95% of payments will have reached people’s hands by December 31, 2022.
Colorado will pay joint filers $1,500 and single filers $750 by September 30, 2022. However, those who asked for a filing extension were unable to get their money until January 31, 2023.
The majority of Idaho’s stimulus payments have already been sent out, although late filers will receive refunds until the end of 2022 and into 2023. Two stimulus contributions to Idaho were authorized.
Second, the greater of $300 for single filers ($600 for joint filers) or 10% of the tax liability before credits and other adjustments. The first amount is the greater of either $75 or 12% of the taxpayer’s tax liability before credits and other adjustments.
Although the procedure is ongoing and is expected to take the bulk of the remaining calendar year, Illinois began issuing stimulus checks in September 2022. Eligible families may receive a maximum of two different payments for their property taxes and income taxes.
The first payment is $50, and up to three more payments of $100 are made for each dependent. The property tax rebate, up to $300, is equivalent to the property tax credit that the return filer sought.
In Maine, payments in the amount of $850 for a single person or $1,700 for a married couple began to be made in June. However, payments will continue to be issued in 2022 as long as tax returns are still being filed.
Payments for the stimulus package have been approved by the state of Massachusetts and will begin in November 2022. The refunds should make up around 14% of each filer’s state income tax owed for 2021.
Only New Jersey residents who owned or rented a main residence in the state as of October 1, 2019, will be eligible for payments, which are anticipated to be made no later than May 2023. Renters who qualify will receive $450, while homeowners with family incomes up to $250 000 would receive either $1,000 or $1,500.
Pennsylvania began distributing stimulus checks for back taxes and rent in August 2022. Pennsylvania renters and homeowners are eligible for a prize that may be up to $650, based on their income and other qualifying factors. Payments are anticipated to continue until 2023, although qualified individuals must make a claim before the end of the year.
Rhode Island began issuing funds for child tax rebates to qualified families on October 3. Taxpayers who asked for an extension on their tax returns will not get their payments until December 2022. A stimulus check for $250, up to a total of $750, is given to each qualifying kid in an eligible family.
By December 31, 2022, South Carolina will award tax credits to qualified individuals; however, late filers could not get their money until March 2023. Although the precise amount of the compensation hasn’t been determined, it will likely exceed $700.