What If I Already Filed My Taxes
An amended return may be needed to claim the credit if IRS records show no payment was issued.
For eligible people who didnt claim a recovery rebate credit on their 2021 tax return , they will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return to claim the remaining amount of stimulus money if IRS records dont show that they were issued a payment.
This includes people who think they didnt get the full amount of their third-round Economic Impact Payment because their circumstances in 2021 were different than they were in 2020.
People trying to figure out if they should amend their original tax return can use this online tool.
More details on claim the 2021 Recovery Rebate Credit can be found here.
Amount Based On 2019 Or 2020 Tax Return
For third-round stimulus payments, eligibility and amounts were based on either your 2019 or 2020 return. If your 2020 tax return wasn’t filed and processed by the IRS by the time the tax agency started processing your third stimulus payment, then the IRS used information from your 2019 tax return. If your 2020 return was already filed and processed when the IRS was ready to send your payment, then your stimulus check eligibility and amount was based on the information on your 2020 return. If your 2020 return was filed and/or processed after the IRS sent you a third stimulus check, but before December 1, 2021, the IRS sent you a second “plus-up” payment for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return. As a result, your third stimulus check may have been higher or lower depending on when you filed your 2020 tax return.
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Millions Of People May Still Be Eligible For Covid
Throughout the pandemic, IRS and Treasury struggled to get COVID-relief payments into the hands of some peopleespecially those with lower-incomes, limited internet access, or experiencing homelessness. Based on IRS and Treasury data, there could be between 9-10 million eligible individuals who have not yet received those payments.
Relief might be in sight for more families and individuals. Individuals with little or no income, and therefore not required to pay taxes, have until to complete a simplified tax return to get their payments. Taxpayers who missed the April 15 deadline have until . These IRS pages, irs.gov/coronavirus/EIP and ChildTaxCredit.gov, have more information on how to complete and submit a tax return.
Todays WatchBlog post looks at our work on COVID-19 payments to individuals, including the Child Tax Credit and next steps for people who may still be eligible to receive theirs.
Who can get a COVID-19 stimulus payment or a Child Tax Credit?
From April 2020 to December 2021, the federal government made direct COVID-19 stimulus payments to individuals totaling $931 billion. Congress authorized three rounds of payments that benefited an estimated 165 million eligible Americans. Generally, U.S. citizens with income below $75,000 or married couples with an income below $150,000 were eligible for all three payments and the full amount of each payment.
What more can Treasury and IRS do to get the word out about how eligible individuals can get their payments?
Here’s Who May Still Be Eligible For Up To $16 Billion In Stimulus Checks
Thousands of Americans may still be owed a third government stimulus check a payment of $1,400 per eligible taxpayer that was authorized by the American Rescue Act in 2021.
About 645,000 potentially eligible people hadn’t gotten a third stimulus check by the middle of September 2021, according to a new report from the Treasury Department’s Inspector General for Tax Administration. Some of those people received checks after September, but the report didn’t identify how many of those taxpayers have received their payments since then.
The amount of the unpaid stimulus checks isn’t small, with the Treasury estimating the balance at $1.6 billion.
To be sure, the bulk of payments from the third round of stimulus checks have been distributed, with the IRS sending checks to more than 175 million taxpayers. But some people may have fallen through the cracks, while the current tax season may provide an opportunity for them to claim the overdue payment.
The IRS on March 30 said it is no longer issuing first-, second-, or third-round stimulus checks. But taxpayers who missed a check or didn’t get the amount they were entitled to can claim the extra payment as a Recovery Rebate Credit on their 2020 or 2021 federal tax return, the agency said.
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$600 For Each Dependent Child
Aside from the smaller stimulus checks for adults, the other major change under the bill passed by Congress is the amount provided for dependent children: $600 for each child, up from $500 in the CARES Act.
However, the bill states the $600 would be directed toward each dependent child under age 17, which means that adults who are nevertheless claimed as dependents such as college students and older high school studentswouldnât qualify for the checks.
Adult dependents, such as seniors who are claimed as dependents on their adult childrenâs tax returns, also wouldnât qualify for the checks. Excluding college students and other adult dependents was a matter of debate with the first round of checks, with some families arguing that older dependents should also qualify for the payments.
A family of two parents with two child dependents could receive up to $2,400 under the provision, lawmakers said.
Also Check: Who Sends The Stimulus Checks
Don’t Expect Big Tax Breaks Related To Child Care
One huge change on the 2022 return applies to those who pay for child care or dependent care so that they can work or look for work. The child and dependent care credit falls back to a maximum of $2,100 on the 2022 tax return instead of a substantially more generous $8,000 for 2021. If you paid for child care, for example, those who qualified based on income could have received up to $4,000 in 2021 for day care expenses for one child or up to $8,000 for expenses relating to two or more children. Income limits apply to receive the credit.
The American Rescue Plan in 2021 greatly expanded the child and dependent care credit for 2021 only but the amount of that credit generally returns to 2020 levels for 2022.
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Stimulus Checks: Parents Who Expanded Families In 2021 Could Be Eligible For A $5000 Payment
As the pandemic enters its third year, there appears to be little momentum for another round of stimulus checks. However, there may be payments waiting for people whose family grew in 2021.
According to a report on Nasdaq.com, folks who added a child to their family in 2021, could be in line for a $5,000 check.
The total goes back to a stimulus payment that was meant for children under the age of 6, but was never paid.
Heres how it works, according to the report.
There was a stimulus payment of $1,400 per dependent from 2021 and an expanded Child Tax Credit worth $3,600 per child for children under the age of 6. That number is $3,000 for children ages 6-to-17.
For a child born last year, he or she would count as a dependent for both the stimulus check and the Child Tax Credit. Parents who adopted a child are also eligible.
For children born in 2021, its likely the IRS wouldnt have known about the child, even though the family was eligible for the payments. They are still eligible for the payments, just in 2022.
The same is true for parents who had twins or triplets, according to the report. That family would be eligible for $10,000 or $15,000.
To receive the stimulus money, new parents only have to file their tax returns.
Are Adult Dependents Getting Third Stimulus Checks
The new stimulus plan expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.
The text of the plan redefines the term dependent according to section 152 of the tax code, which includes both qualifying children and adults: Section 152 provides that the term dependent means a qualifying child ) or a qualifying relative ).
While the plan pays out $1,400 for each qualifying dependent, families should keep in mind that the targeted lower income ranges exclude them if they earn over $160,000.
For reference, the second stimulus checks provided additional $600 payments for qualifying dependents under the age of 17. So a couple filing jointly with three eligible children could get a maximum second payment of $3,000 .
Under the first and second rounds of stimulus checks, children and adult dependents over the age limit could not get an additional payment, and they did not qualify for a stimulus check of their own either.
With the new stimulus plan, however, both joint filers and heads of household get an additional $1,400 payment for each dependent, regardless of age. The table below breaks down the third stimulus checks for heads of household with one dependent:
|Stimulus Checks for Heads of Household& 1 Dependent|
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Timing Of Third Stimulus Checks
Question: When will I get my third stimulus check?
Answer: Millions of Americans have already received their third stimulus check. And the IRS will be sending out more over the next several weeks. So, if you havent received your payment yet , it should arrive relatively soon.
How long it will take to send all payments is not known yet. The IRS has a lot on its plate right now. Were in the middle of tax return filing season, so the IRS is already busy processing tax returns. The tax agency also has to send refunds for people who reported unemployment compensation on their 2020 return and come up with a way to send periodic child tax credit payments later this year. All of this could very well slow down the processing and delivery of third-round stimulus checks.
If the IRS already has your bank account information either from a recent tax payment that you made, a tax refund it sent you, or some other source then expect to get your third stimulus check faster. Thats because the IRS will be able to directly deposit the payment into your bank account. The IRS can also make a third stimulus payment to a Direct Express debit card account, a U.S. Debit Card account, or other Treasury-sponsored account. Otherwise, youll get a paper check in the mail.
If you already have a prepaid debit card from the IRS , youll get a new card if the IRS decides to send your third stimulus payment to you in that form.
How To Claim A Missing Payment
You may be eligible to claim a Recovery Rebate Credit on your 2020 or 2021 federal tax return if you didn’t get an Economic Impact Payment or got less than the full amount.
It is important to understand that the Economic Impact Payments applied to different tax years. Depending on whether you missed the first, second or third payment, you will need to file either a 2020 or 2021 tax return to claim a Recovery Rebate Credit.
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What If My Bank Account Information Changed How Will I Get My Second Stimulus Check
Unfortunately, if your second stimulus check is sent to an account that is closed or no longer active, the IRS will not reissue the payment to you by mail. Instead, if you are eligible to get a payment, you can claim the stimulus check on your 2020 tax return as the Recovery Rebate Credit or use GetCTC.org if you dont have a filing requirement.
Most Stimulus Payments Were Saved Or Applied To Debt
US households report spending approximately 40 percent of theirstimulus checks, on average, with about 30 percent saved and another30 percent used to pay down debt.
The Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020, was designed to bolster household incomes and support consumer spending. It achieved the first goal, but had only a modest impact on consumer spending. Survey data on household behavior suggest that nearly 60 percent of the stimulus spending went to pay off debt or was saved. Of the roughly 40 percent that was spent on goods and services, consumers favored food and beauty products rather than large durables like cars or appliances. The averages mask considerable variation among households. Some 20 percent saved virtually all of their stimulus check another 40 percent spent nearly all of it. Roughly 20 percent used most of their federal payment to reduce their debts.
These findings inHow Did US Consumers Use Their Stimulus Payments? reflect general patterns seen in 2001 and 2008, when the federal government also countered economic downturns with direct transfer payments. The 2020 payments, however, were much larger and the recipients were somewhat less likely to spend than in the past.
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What If My Mailing Address Changed Since I Received My Previous Stimulus Checks How Will I Get My Third Stimulus Check
If you are expecting to receive your third stimulus check by mail, it will be mailed to the last address you filed with the IRS. If your address has changed since then, there are different options you can take to make sure your stimulus check gets to you:
Option 1: File your 2020 federal tax return to update your address. If you havent filed your 2020 tax return yet, this is an easy way to update your address. File a tax return with your current address and your payment will be sent through the mail once the IRS receives your updated address.
Option 2: Provide your banking information in the IRS Get My Payment tool. If the post office was unable to deliver your stimulus check, it will be returned to the IRS. Two to three weeks after the payment has been issued, Get My Payment will display the message Need More Information. You will have the option to have your payment reissued as a direct deposit by providing your banking information.
If you dont provide your banking information, the IRS will mail your payment once your address is updated.
Option 3: Notify the IRS that your address has changed by telephone, an IRS form, or a written statement. It can take 4-6 weeks for the IRS to process your request.
Third Round Of Stimulus Checks: March 2021
Barely a week after the second round of stimulus payments were completed, new president Joe Biden entered office and immediately unveiled his American Rescue Plan, which proposed a third of round of payments to Americans, including some of those who might have missed out on the first two rounds.
On Thursday 11 March, Biden signed his $1.9tn American Rescue Plan into law. The third payment provided eligible individual taxpayers for a check of up to $1,400, while couples filing jointly could receive a maximum of $2,800. In addition, families with dependents were eligible for an extra payment of $1,400 per dependent, regardless of the dependent’s age this time, there was no limit to the number of dependents that could be claimed for.
The first stimulus payments were issued swiftly – just hours after Biden has signed the bill, the first batch of 164 million payments, with a total value of approximately $386 billion, arrived by direct deposit in individuals bank accounts. Some received their payments on the weekend of 13/14 March 2021. Since then, payments had been sent on a weekly basis including “plus-up” payments until the end of the year. Like before, those who didn’t get all the EPI3 funds in 2021 due to them will be able to claim them when they file their tax returns in the spring of 2022.
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Irs Begins Delivering Third Round Of Economic Impact Payments To Americans
IR-2021-54, March 12, 2021
WASHINGTON The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week.
Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients will start receiving as early as this weekend, and with more receiving this coming week.
Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The vast majority of these payments will be by direct deposit.
No action is needed by most taxpayers the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020. People can check the Get My Payment tool on IRS.gov on Monday to see the payment status of the third stimulus payment.
“Even though the tax season is in full swing, IRS employees again worked around the clock to quickly deliver help to millions of Americans struggling to cope with this historic pandemic,” said IRS Commissioner Chuck Rettig. “The payments will be delivered automatically to taxpayers even as the IRS continues delivering regular tax refunds. We urge people to visit IRS.gov for the latest details on the stimulus payments, other new tax law provisions and tax season updates.”