In the United States, the Recovery Rebate Credit of 2021, also known as stimulus check, is a US Internal Revenue Service (IRS) program intended to provide financial aid to eligible taxpayers. This credit allows people to claim up to $1,400 per person on their 2021 tax return if they did not receive the full third Economic Impact Payment. The main objective is to ensure that all qualifying citizens get the financial support they are entitled to.
Recently, the IRS announced the issuance of additional automatic payments, known as special payments, to approximately one million taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. These are the stimulus checks. The goal of these payments, which come to about $2.4 billion, is to make sure that people who didn’t claim the credit receive the appropriate amount without having to take further action.
Who is eligible to get this Stimulus check?
In order to qualify for the 2021 Recovery Rebate Credit, one must fulfill the requirements set forth by the IRS:
- Valid Social Security Number (SSN): Prior to the filing date of the 2021 tax return, the taxpayer and any dependents they may have claimed must have a valid SSN.
- Not a dependent: The taxpayer must not have been claimed as a dependent on another person’s tax return for the year 2021.
- Income within established limits: The amount of the credit begins to be reduced for individuals with adjusted gross income (AGI) over $75,000, heads of household with AGI over $112,500, and married couples filing jointly with AGI over $150,000.
It is significant to remember that if an individual satisfies the other standards, they may still qualify for the credit even if they have little or no income. Additionally, provided they fulfilled the requirements prior to their passing, people who passed away in 2021 or 2022 but did not get the third Economic Impact Payment might qualify for the stimulus check credit.
How to get the stimulus check?
Even if they are not typically obliged to, taxpayers must file a 2021 tax return in order to claim the 2021 Recovery Rebate Credit. Through its IRS Free File program, the IRS provides free alternatives for preparing and filing electronic returns. The fastest way to get a refund is to file electronically and choose direct deposit to a bank account, prepaid debit card or mobile app.
It is crucial that taxpayers file their 2021 tax return by April 15, 2025, to be eligible for the credit and any other refunds they may be entitled to. To prevent payment delays, it is best to file the return as soon as feasible. It is not required to file an updated return because the IRS will automatically correct the amount and notify the taxpayer of any changes if they make a mistake when calculating the credit on their 2021 return.
In all of these cases, taxpayers who did not get the full amount of the stimulus payments have the chance to claim the 2021 Recovery Rebate Credit, also known as the “stimulus check.” To receive this benefit, you must fulfill the eligibility requirements and submit the relevant tax return before the deadline.