And finally, the IRS would like to remind all taxpayers to check and see if they are eligible for the $1,400 stimulus check. This check—which is officially called the recovery rebate credit—was first distributed in the midst of the pandemic. Hardly any filers have received their funds in a timely manner. The deadline to address this problem is barreling towards us on April 15. Eligible individuals and families can and should act soon to claim this important financial relief. If you’re still waiting on your payments—please stop dragging your feet!
The recovery rebate credit is the only path forward for many filers who did not receive their stimulus checks. The IRS reminds taxpayers to see if they qualify for this valuable credit. So please, double check your claims as you prepare your 2021 federal tax returns. The payments, which were worth up to $1,400 for individuals and $2,800 for married couples, provided substantial support during the pandemic.
Tax Filers with Qualifying Dependents
Families can get an additional $1,400 per dependent child. That’s a full $5,600 for a family of four!
If you’re concerned about getting your payments, fret not! The IRS has made it easy to verify that information through their online account system. It makes it easier for taxpayers to track the status of their payment. They can use it to access their tax records, ensuring they aren’t leaving any money on the table. If they haven’t yet gotten that stimulus check, now there’s an answer for them! They are eligible to claim the recovery rebate credit on their 2021 tax return.
Eligibility for the recovery rebate credit has not been universal. So the phaseout starts for AGIs above 225K for married couples filing jointly, 5K less for other filers. For single filers, there’s no gradual phase out—in fact, they completely lose eligibility once their income reaches $80,000. For married couples filing jointly, that threshold is $260,000. Taxpayers need to know these income limits when determining whether they qualify for the credit.
In December, the IRS announced its intention to issue these “special payments.” Realistically, only about 1 million taxpayers should expect these payments since they did not claim the recovery rebate credit on their 2021 tax returns. This program guarantees that qualified people receive their money in a timely manner. Our eyes are set on getting payments under the program before the big cut off coming in 2024.
With the April 15 deadline approaching, time is running out for taxpayers to take action. If you believe you’re eligible for the recovery rebate credit, act now! Retirees who have not yet claimed these funds should make the most of this opportunity to improve their financial fortunes.
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