By the end of this month, some U.S. taxpayers could receive a stimulus check worth up to $1,400. This payment is tied to the 2021 tax returns, and whether or not you qualify depends on whether you claimed the Recovery Rebate Credit on your return.
What’s the Latest Stimulus Payment About?
In December, the Internal Revenue Service (IRS) announced it would be sending out approximately $2.4 billion in stimulus checks. Each check could be as high as $1,400 per individual. However, these payments are meant for people who did not claim the Recovery Rebate Credit on their 2021 tax returns.
The Recovery Rebate Credit is a refund available for those who didn’t receive all or part of their Economic Impact Payments (commonly known as stimulus checks). It’s a credit that helps eligible taxpayers get the money they missed out on. The IRS found that a number of taxpayers missed claiming this credit when filing their 2021 taxes.
IRS Commissioner Danney Werfel explained, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. 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.”
What’s Happened So Far with Stimulus Payments?
This is not the first time the IRS has issued stimulus payments. The agency has previously issued three rounds of stimulus payments during the COVID-19 pandemic. As a result, many taxpayers have already received their full stimulus payments and are not eligible for this new round.
According to IRS data, in 2022, about 393,000 people from Pennsylvania alone claimed the Recovery Rebate Credit. However, the IRS has not yet released specific figures on how many Pennsylvania residents will be getting their unclaimed credit this year.
Who is Eligible for the New Stimulus Check?
To be eligible for the latest round of stimulus payments, taxpayers must not have claimed the Recovery Rebate Credit on their 2021 tax returns.
If you’re unsure whether you qualified for the credit, check your 2021 tax return. If you left the Recovery Rebate Credit section blank or marked it as $0, you’re likely eligible for the payment.
How Do Taxpayers Get the Payment?
Good news for eligible taxpayers: You don’t need to do anything to receive this stimulus check. The IRS has started sending out payments automatically, beginning in December, and will continue doing so through late January.
Once your payment is processed, the IRS will send you a letter confirming that the payment is on its way. You will receive the money either via direct deposit or by paper check, depending on how you filed your tax return.
How Much Will You Receive?
Eligible taxpayers can expect a payment of up to $1,400, depending on their individual situation.
What If You Didn’t File a 2021 Tax Return?
If you didn’t file a tax return for 2021 but think you’re eligible for this payment, there’s still time. According to the IRS, you can still file your 2021 tax return and claim the Recovery Rebate Credit. You have until April 15 to do so.
Filing your 2021 tax return and claiming the credit can make you eligible for the payment. So, if you missed out earlier, you could still get this benefit by filing your return on time.
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