Nobody likes to throw money away, especially a stimulus payment from the United States that they were eligible for but didn’t get.
All third-round stimulus checks, formally known as economic impact payments, or EIPs, were paid out in late January, according to the Internal Revenue Service. However, the IRS pointed out that not all eligible Americans got the entire amount due to them.
Some may not get all their stimulus money
There’s still time to collect what you’re due. Uncle Sam reminded individuals that they may claim any remaining stimulus money they’re entitled to but didn’t get by claiming the Recovery Rebate Credit on their 2021 income tax return. Uncle Sam released 175 million third-round payments totaling over $400 billion until the end of 2021, according to AARP.
The rebate, which will appear on your 2021 tax return as a tax credit of up to $1,400 per qualified individual, may either reduce the amount of tax you owe or increase the size of your refund.
Because the IRS based the EIPs on the income and number of dependents indicated on a person’s 2019 or 2020 tax return, some persons may not have gotten all of their third-round stimulus money.
However, a person’s 2021 return determines the entire amount of the 2021 Recovery Rebate Credit. Because the IRS was unaware of the changes before sending out the checks, if an individual’s circumstances changed last year, such as adding a baby or earning less money, the IRS has not considered those changes into their payment amounts.
What does it take to claim a missing stimulus check?
In most cases, receiving an IRS letter in the mail is a source of fear for a taxpayer. However, the tax office is sending you a fresh notification right now that shouldn’t worry you.
It’s something that millions of Americans will need in order to correctly complete their federal income tax return this year. This is because the letter provides information on the stimulus check you received last year. Which you must report on your tax return.
And it might also help you collect more of the stimulus check you’re entitled to if you didn’t receive some or all of the third stimulus check last year for whatever reason. The same is true for the six payments of the Child Tax Credit. However, those are addressed in a separate IRS letter that you should keep an eye out for, as per BGR.