Individuals who received a third stimulus check in 2021 should soon receive a notice from the Internal Revenue Service regarding tax filing.
“Those who receive these letters are urged to retain them,” the IRS stated in a statement. “Do not discard them.”
The letters are intended to assist you with your 2021 tax returns by providing a more detailed explanation of how to claim economic impact (stimulus) payments, which are not taxed but must still be claimed.
However, what if you miss a stimulus payment?
Are you eligible for a recovery rebate credit and, if so, should you apply? The explanation letter will guide you through the process, informing you of the amount of stimulus money you got, including any “plus-up payments,” as well as any additional funds payable to you.
Third stimulus cheques, worth up to $1,400 for participants and any dependents, began being distributed in March.
Letters are scheduled to begin being distributed by the end of January. Additionally, families who got child tax credit payments last year will receive a second letter.
The CARES Act’s enactment resulted in the first round of direct payments to American taxpayers being made in April 2020. These payments were followed by another phase in December 2020 and a third round in 2021 as part of the American Rescue Plan. Additionally, in July 2021, the IRS began giving monthly payments to families with children as a precursor to the higher child tax credit.
Find out more about filing your tax returns, which are due on April 18, by visiting the IRS website.