How To Claim Your Missing Third Stimulus Payment On Your 2021 Tax Return
Youâll need to request any missing third stimulus payments on your 2021 tax return by claiming the Recovery Rebate Tax Credit.
This is the case if you received a partial amount or didnât previously qualify for the third stimulus payment.
Letâs say youâre single and your income for the 2020 and 2019 tax years exceeds the threshold . However, you lost your job in 2021, so your income drastically decreased. You can now claim the Recovery Rebate Tax Credit since your earnings fell below the threshold.
Families that added dependents may also be able to claim the credit.
In addition, a few lingering taxpayers who file taxes using ITINs may not have received payments for their eligible dependents who have Social Security numbers.
You need to complete the Recovery Rebate Tax Credit worksheet and submit it along with your 2021 tax return. If you use a tax software program, it should guide you through the process. Keep in mind, the IRS predicted a frustrating and slow tax season this year, so file your return as soon as possible.
Before completing the worksheet, you must know the amount of any third stimulus payments received for you, your spouse, and any dependents. The worksheet will also request your adjusted gross income for the year to determine your eligibility.
The IRS started mailing Letter 6475 to taxpayers in Januaryâthe letter confirms the total amount of the third stimulus payments received for the 2021 tax year.
You May Not Receive A Check This Round Even If You Got One Before
The income limits for this new round of stimulus checks have changed. So even if you previously received a stimulus check, you may not qualify for this one.
The adjusted gross income maximum income for the American Rescue Plan Act are:
- Individuals earning $80,000
- Head of households earning $120,000
If your AGI exceeds these amounts, your household will not qualify for the stimulus payment.
Additionally, the phase-out for stimulus reductions is more complicated to calculate this time around. Since the maximum income threshold is fixed, your total stimulus check will be reduced proportionately by the amount earned over $75,000 for individuals, $112,500 for heads of households, or $150,000 for joint filers until it hits the phase-out limits above.
‘a Blessing To’ Category
With the past year being a financially tumultuous one for many, families may want to think about designating a portion of their $5,600 stimulus cash to give back.
Consider looking up a local food pantry or community organization near you that you can use your funds to help out. You can also make a charitable gift to a non-profit or private foundation of your family’s choice.
“This will help the family focus on their own blessings, as well as receive the joy that comes from being able to help someone else out,” Wells says.
You May Like: News About The Stimulus Check
Who Is Eligible For The Recovery Rebate Credit
According to the IRS, most people who were eligible for the third round of payments have already received their stimulus checks but there are a few situations why someone might not have received it or received the wrong amount. For example:
You’re claiming a new dependent in 2021 .
Your marital status changed in 2021.
Your adjusted gross income from 2019 or 2020 was high enough to make you ineligible for a stimulus check, but your 2021 AGI is now lower and within the qualifying threshold.
You did not have a Social Security number but received one by the 2021 tax deadline.
If You Provided Information Using The Irs Non
If you provided your personal information to the IRS using the non-filers portal, your money will be direct deposited into the bank or credit union account or prepaid card that you provided when you submitted your information. If you did not provide payment account information, a check will be mailed to you to the address you provided.
No matter how you receive your payment, the IRS will send you a letter in the mail to the most current address they have on file about 15 days after they send your payment to let you know what to do if you have any issues, including if you havent received the payment.
Read Also: Did The New Stimulus Bill Pass
Read Also: Why I Didn’t Get My Stimulus Check
What Did Previous Stimulus Programs Cover
The first two stimulus programs used a more generous income range.
The past stimulus payments those for the first and second programs were gradually reduced for singles with an an adjusted gross income between $75,000 and $100,000 and for married couples who are joint filers with an AGI between $150,000 and $200,000.
The first stimulus checks which began rolling out in April 2020 were up to $1,200 for individuals and up to $2,400 for a married couple. An extra $500 was offered for dependents age 16 and younger.
The second stimulus checks which began rolling out in January were up to $600 for individuals and up to $1,200 for a married couple. An extra $600 was offered for dependents age 16 and younger.
The money itself for next round of stimulus payments could roll out in a similar fashion to the last two stimulus payments.
Those who will receive direct deposits will see the money the soonest. Paper checks would take a bit longer.
Watson said filers with direct deposit information could expect the payments within about two weeks of the bill becoming law, similar to the timeline with the direct payments after the second stimulus was signed into law by the president on Dec. 27.
“Paper checks and prepaid debit cards may take longer, through April at least,” he predicted.
“The IRS tends to prioritize those with lower AGIs first when sending out those payments.”
Will There Be A Fourth Stimulus Check
Probably not. Although a group of more than 60 Democratic lawmakers have signed a letter urging Biden to consider sending more direct payments to individuals, there has been no indication from him that he is considering more direct relief to Americans.
Instead, Biden has released his plans for trillions in spending for other priorities through the American Jobs Plan and American Families Plan, which provide funding for paid family leave, housing, child care, infrastructure improvements and more. We will be following the situation closely and updating you every step of the way.
Recommended Reading: Paying Back Stimulus Money 2021
Who Would Be Eligible For The Third Stimulus Check
Families earning less than $150,000 a year and individuals earning less than $75,000 a year should get the full $1,400 per person. Families earning up to $160,000 per year and individuals earning up to $80,000 per year will receive prorated stimulus checks for less than $1,400 max.
Unlike the previous two rounds, you will receive stimulus payments for all your dependents, including adult dependents and college students.
What If I Am Eligible For The Stimulus Checks But I Didnt File A 2019 Or 2020 Tax Return And Didnt Use The Irs Non
You can file a tax return even if you dont have a filing requirement to get other tax credits, such as the Earned Income Tax Credit.
If you didnt get your first or second stimulus check or didnt get the full amount that you are eligible for, file a 2020 federal tax return and claim them as part of your tax refund or use GetCTC.org if you dont have a filing requirement. The deadline to use GetCTC.org is November 15, 2021.
You May Like: Free File Taxes For Stimulus
How Your 2021 Adjusted Gross Income Could Lead To A Bigger Stimulus Check Next Year
Since the third stimulus checks are a 2021 Recovery Rebate Credit, if your income is lower in 2021 than in 2020 or 2019 making you eligible for a stimulus payment or a bigger stimulus payment you can claim the correct payment when you file your 2021 taxes next year. This also applies for other changes in circumstances, like if you had a child. It’s unclear exactly when or how people would receive these payments. The IRS hasnt responded to Moneys request for comment on how the agency will handle these additional payments, or if the agency will look at amended 2020 returns at the “additional payment determination date.
Even if you can’t lower your way to a third stimulus check, reducing your AGI still generally results in a smaller tax bill. And you’ve set away funds for the future. Unless the tax deadline gets pushed back, you have until April 15.
Is There A Deadline To Get My Second Stimulus Check
All second stimulus checks were issued by January 15, 2021. If you didnt get a second stimulus check by then , you can claim your second stimulus check as the Recovery Rebate Tax Credit on your 2020 tax return or use GetCTC.org if you dont have a filing requirement.
If youre required to file taxes:
The deadline to file your 2020 tax return was May 17, 2021. The tax filing extension deadline is October 15, 2021. Many tax filing software programs close after this date. If you can find an online tax filing program that is still accepting 2020 tax returns, you can file a tax return to get your stimulus checks even though the deadline has passed.
If you dont owe taxes, there is no penalty for filing late. If you owe taxes, you may be subject to penalties and fines for not filing or not paying taxes. The government may reduce your tax refund to pay for any taxes you owe and other federal and state debts.
If youre not required to file taxes:
The deadline to use GetCTC.org is November 15, 2021. You can get the Recovery Rebate Credit using GetCTC.org, a simplified tax filing portal for non-filers. GetCTC is an IRS-approved service created by Code for America in partnership with the White House and U.S. Department of Treasury. You can use the portal even if youre not signing up for the Child Tax Credit advance payments.
Don’t Miss: Is North Carolina Getting Another Stimulus Check
New Age Rules For Dependants
The new bill outlines that dependants can be older than 16.
For the previous checks, the age limit for dependants was 16, with older teens and young adults like college students missing out.
Now they will be eligible for the payment which means parents will get more money for each dependant added to their own check.
The amount will be $1,400 for dependants too.
Who Qualifies For A Payment
Taxpayers must have a Social Security number to be eligible for a payment and meet the income requirements detailed above.
While the steeper income phase out reduces the number of taxpayers qualifying for this stimulus payment, all dependents of eligible taxpayers will also receive a payment for the first time. That includes millions of college students, disabled adults and elderly Americans. Mixed-status families in which some members have Social Security numbers and some do not are also eligible, as they were for the second payment.
Like the second stimulus payment, those who owe child support should not have any of their stimulus money withheld.
You May Like: How To Claim 2021 Stimulus Check
What If I Filed My Taxes For The First Time In 2020
First-time taxpayers may face additional delays in receiving their stimulus payments.
Before the IRS can issue these stimulus checks, they must receive and process your 2020 tax return. However, due to new tax codes and more complicated tax filings this year , as well as processing stimulus payments, the IRS is backlogged. There are already 6.7 million returns yet to be processed, which is significantly higher than the nearly 2 million delayed returns at this point last year.
Read More: Best Tax Software of 2021
The IRS has said that it continues to process tax refunds while it processes stimulus payments. If you have not filed your 2020 taxes and anticipate a refund, the IRS recommends filing electronically and providing your direct deposit information. According to the IRS.gov, IRS issues more than 9 out of 10 refunds in less than 21 days.
However, the Washington Post reported that some people who filed on Feb. 12 are still waiting for their returns to be processed.
New Income Limit Rules For Dependants
If the bill goes forward as it is now and there are no changes, some families will not get a payment for dependants.
With previous stimulus checks, some people recieved partial payments because they have kids even when they were over the income limits and didn’t get money themsleves.
Now, the way the third stimulus is being calculated means there will be no payment – even a partial one – for those who earn above the limit and have dependants.
Don’t Miss: Who Qualified For Stimulus Checks In 2021
What Does Aarps Coronavirus Stimulus Check Calculator Do
President Biden signed the American Rescue Plan into law on March 11, 2021. Our calculator provides an estimate of the amount you might receive in a third federal stimulus check, based on the information you enter. This is only an estimate the actual amount you receive, if any, will be determined by the Internal Revenue Service , the government agency in charge of disbursing the third round of stimulus checks, formally known as economic impact payments.
What If I Owe Child Support Payments Back Taxes Money To Creditors Or Debt Collectors Or Federal Or State Debt
None of the three stimulus checks can be reduced to pay any federal or state debts and back taxes. Unlike the first stimulus check, your second and third stimulus check cannot be reduced if you owe past-due child support payments.
|Federal or State Debt|
If you are claiming the payments as part of your 2020 tax refund , the payments are no longer protected from past-due child support payments, creditor and debt collectors, and other federal or state debt that you owe . In other words, if you receive your first or second stimulus checks as part of your tax refund instead of direct checks, it may be reduced.
You May Like: Where Is My Stimulus Refund
How Do I Get Help Filing A Tax Return To Claim My Eip
- The IRS recommends electronic filing, and we agree. It is a faster, more secure option. Paper forms will take much longer to be processed by IRS. You may qualify for free e-file software.
- You can also call the Vermont 2-1-1 hotline and follow the menu options for tax preparation. Through this service you may be able to schedule an appointment with a free Volunteer Income Tax Preparation Assistance site. These sites are staffed by trained volunteers. They provide free preparation services to taxpayers who meet eligibility requirements.
- Also, you can find Form 1040 and Form 1040 instructions on the IRS website.
Is Any Action Needed By Social Security Beneficiaries Railroad Retirees And Those Receiving Veterans’ Benefits Who Are Not Typically Required To File A Tax Return
Most Social Security retirement and disability beneficiaries, railroad retirees and those received veterans’ benefits in 2020 should not need to take any action to receive a payment. As with the first two stimulus payments, the IRS is to send out the new payments the same way benefits are normally paid. The IRS is working directly with other federal agencies to obtain updated 2021 information for recipients.
Some people who will receive an automatic third payment based on their federal benefits information may need to file a 2020 tax return even if they don’t usually file. If your third payment does not include a payment for your qualified dependent who did not receive a third payment, you must file a 2020 tax return to be considered for an additional third payment even if you don’t normally file.
If you’re eligible and didn’t get a first or second Economic Impact Payment or got less than the full amounts, you may be eligible for the 2020 Recovery Rebate Credit but you’ll need to file a 2020 tax return. See the special section on IRS.gov: Claiming the 2020 Recovery Rebate Credit if you aren’t required to file a tax return.
Read Also: File Taxes To Get Stimulus
How Will You Receive Your Payment
The majority of payments will be sent via direct deposit. The IRS states that those who do not receive their stimulus payments as direct deposit will likely receive it as a mailed check.
Payment may also be sent as a prepaid debit card, as known as an EIP card. If payment is issued as a debit card, you will receive a new debit card, even if you had a previous EIP card. The new payment will not be added to an EIP card from a previous stimulus payment.
Make sure to keep a close eye on your mail over the coming weeks to ensure your check or EIP card is not lost in your junk mail. If your mailbox is not secure, the IRS recommends that you check it regularly.
If you receive Social Security or another federal benefit, you will generally receive your payment in the same method those payments are received. The IRS has not yet announced when these payments will be sent, but estimates that information will be available shortly.