Taxpayers should claim any unclaimed third-round stimulus funds on their 2021 income tax returns, according to the Internal Revenue Service.
Those who were eligible but did not get the $1,400 payment had until the end of the tax season to file a claim.
People who are missing a stimulus payment or who received less than the amount they are eligible for will be required to claim a Recovery Rebate Credit on their federal tax returns filed in 2020 or 2021, according to the Internal Revenue Service, because the IRS will no longer be issuing Economic Impact Payments.
The great majority of those who are eligible have already received their stimulus payments and will not be required to reveal any information about them when filing their tax returns in 2021.
According to the Internal Revenue Service, more than 175 million third-round payments totaling more than $400 billion have been given to taxpayers around the country. In the spring and early summer of 2021, the great bulk of such payments was made.
Many people, though, are still waiting for their money.
Authorities identified 644,705 persons who were entitled to $1.6 billion in payments but had not received them, according to a study released last week by the Treasury Inspector General for Tax Administration.
Your third payment is yet to arrive.
The IRS advises taxpayers to verify their bank accounts in the early spring and summer of 2021 to ensure that they did not receive the third payment.
By logging into their IRS Online Account, an individual can see the entire amount of the third-round Economic Impact Payment that has been granted to them. For married couples filing jointly, there is a separate online account.
If a taxpayer verifies they never received the payment, their IRS account indicates a payment amount greater than $0, or they get a Notice 1444-C or Letter 6475, a payment trace may be necessary.
Read More:- Is It Possible for Me to Receive a Stimulus Payment After Paying My Taxes in 2022?
They do not, however, need to wait until their tracing is complete before completing their 2021 tax return, according to officials.
When filling out the Recovery Rebate Credit worksheet, taxpayers have two options: use the amount on Letter 6475 (or the EIP 3 amount from the online account) to calculate the recovery rebate credit on line 30, or use the amount of stimulus payment the taxpayer believes they received to calculate the rebate credit on line 30. (You may learn more about this by clicking here.)
Those who enquire about the amount of the stimulus payment will receive a response from the Internal Revenue Service. If the IRS determines that the taxpayer did not receive the monies, the recovery rebate credit amount on the tax return will be revised, and any refunds due will be issued.
If people make a mistake while calculating the recovery rebate credit and claim an inaccurate amount on line 30 for the 2021 Recovery Rebate Credit, the IRS will have to adjust the amount and notify the people. According to government officials, this could cause a delay in processing the refund.
What Should I Do Now That My Taxes Have Been Filed?
A revised return may be required to claim the credit, depending on IRS data.
Those who are qualified but did not claim a recovery rebate credit on their 2021 tax return (so line 30 is blank or $0) must file a Form 1040-X, Amended U.S. Individual Income Tax Return to claim the remaining stimulus money if IRS records do not reflect that they were awarded a payment.
This group also includes people who believe they were not granted the full amount of their third-round Economic Impact Payment because their circumstances in 2021 varied from those in 2020.
If you’re not sure if you should alter your initial tax return, use this.
