Date: 2025-01-08 Page is: DBtxt003.php txt00027810
US TAXATION
AN UNUSUAL MOVE BY IRS
CNBC: The IRS is sending up to $1,400 to 1 million Americans
How to know if you qualify
AN UNUSUAL MOVE BY IRS
CNBC: The IRS is sending up to $1,400 to 1 million Americans
How to know if you qualify
US Treasury Check. Used for tax refunds and also the Covid-19/coronia virus stimulus payments in 2020 ... Lpettet | Getty
Original article: https://www.cnbc.com/2024/12/23/irs-sends-stimulus-checks-to-a-million-americans-see-if-you-qualify.html
Peter Burgess COMMENTARY
Peter Burgess
Published Mon, Dec 23 2024 ... 12:23 PM EST
Written by Mike Winters
The Internal Revenue Service is sending up to $1,400 to around 1 million tax filers who qualified for Covid-19 stimulus checks in 2021, but didn’t claim them.
In an unusual move, the IRS is proactively issuing payments to taxpayers who missed claiming the Recovery Rebate Credit, a tax credit that allows people to receive the Economic Impact Payments — also known as stimulus checks — they missed in 2021. Originally designed as a self-claimed credit, the agency is now ensuring eligible taxpayers receive the payments they are entitled to.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a press release. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
If you haven’t filed a 2021 tax return yet, you can still qualify for the credit — but you must do so by April 15, 2025, according to the IRS.
How the credit works and when you’d receive it
The stimulus check, part of the American Rescue Plan Act of 2021, was the final payment issued to provide financial relief during the Covid-19 pandemic.
Known as the Recovery Rebate Credit when claimed through a tax return, it provides up to $1,400 per person, with the exact amount dependent on adjusted gross income and phased out at higher income levels:
- Single filers: You qualify for the full $1,400 if your AGI in 2021 was $75,000 or less. The credit begins to decrease for incomes over $75,000 and is fully phased out at $80,000.
- Married filing jointly: You qualify for the full $2,800 (for two people) if your combined AGI in 2021 was $150,000 or less. The credit begins to decrease for combined incomes over $150,000 and is fully phased out at $160,000.
- Dependents: Families can receive $1,400 for each dependent in 2021, regardless of age, but the amount is subject to the same income phaseout limits as the primary filer.
No action is needed for eligible taxpayers to receive these payments unless you haven’t yet filed a 2021 tax return.
Payments are being sent now and should arrive in “most cases” by late January 2025, according to the IRS. Payments will be automatically deposited using the banking information listed on the taxpayer’s 2023 tax return or sent by paper check. Eligible taxpayers should also receive a separate letter notifying them of the payment.
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