President Biden’s $1.9tn American Rescue Plan was signed into law in March 2021, and the third stimulus check was sent out to eligible US taxpayers, with households receiving an additional $1,400 per dependent. This year, Americans who missed out on a third stimulus check payment in 2021 may be able to claim the money on their tax return, according to AS.
Recovery Rebate Credit
Those who had children in 2021 are eligible to claim the Recovery Rebate Credit on their next tax return, even if they have already received their full payment. The Recovery Rebate Credit (also known as economic impact payments or stimulus checks) was sent out in 2021. According to MARCA, if recipients still haven’t received the total amount they expected by the end of the year, they can claim the difference on their 2022 tax return.
The Internal Revenue Service has distributed over 171 third stimulus check payments totaling more than $400 billion as of July 2021. These figures are expected to rise during tax season in 2022. The information in taxpayers’ 2021 tax declarations will now be used to determine whether they are eligible for a payment, rather than relying solely on Americans’ 2019 or 2020 tax returns.
Unless they are a student or permanently disabled, dependents must be under the age of 19 at the end of the year in order to be eligible. As a final requirement, the dependent must be either a child or a sibling, a foster child, or a stepfamily member.
According to The Sun, the Internal Revenue Service (IRS) will pay back money owed to eligible taxpayers who request a Recovery Rebate Credit during tax season. Individuals and married couples filing jointly must have an adjusted gross income (AGI) of $75,000 or less (for individuals) $150,000 (for married couples) or less to be eligible for the total amount of the third round of checks.
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