So many parents relied on the stimulus payments which were signed into law in March 2021. As part of the American Rescue Plan, a $1.9 trillion package, millions of parents received stimulus checks — three separate checks that ranged from $600 to $1,400 distributed by the Internal Revenue System (IRS). These stimulus checks made a big difference in the lives of families as the pandemic continued on, and though the hope for a 4th is just that: blind hope, if you never received your final $1,400 stimulus check, it’s not too late. Here’s what you need to do.
By the time July rolled around, the IRS had issued more than 171 million payments of up to $1,400, which totaled $400 billion. These stimulus payments were to be completed by the IRS by December 31, 2021, to send to recipients who were eligible. However, there are some Americans who were skipped, even if they qualified, and if that was you, your money isn’t gone – you just have to know how to ask for it.
According to CNBC, if you didn’t receive your payment or you received less than what you were eligible for, you can claim the missing cash on your 2021 tax return by using the Recovery Rebate Credit. If you used this to, say, get your $600 stimulus check in March of 2021, then you already know what to do. But if this is the first stimulus check you ever missed, read no further.
To be eligible for the Recovery Rebate Credit, you need to outline all the stimulus money you received this year if any at all. Also need to know how much you should have been sent if you didn’t get the full amount. And if you don’t file taxes? You should still do this, the IRS says. In fact: “If you’re eligible, you’ll need to file a 2021 tax return, even if you don’t usually file a tax return,” the IRS said in a statement.
The amount you received for the 2021 stimulus was determined from the 2019 or 2020 tax returns. That means you could be eligible for more money if your income dropped or if you had another child that year. Those extra payments will either be applied to lowering your bill, applied to taxes owed, or returned in your refund.
And that’s where that Letter 6475 comes in again. Anyone who received IRS payments in 2021, whether that be the stimulus money or the Child Tax Credit, will receive a letter from the IRS that outlines how much money you were sent this year.
Keep your eyes peeled for that letter and reach out to the IRS portal if you have questions on your specific situation.