The IRS has started sending letters to about nine million households nationwide reminding Americans who have yet to file their taxes this year that they may be eligible for $1,400 in stimulus checks. $ – or even $2,800 for married couples.
Americans who have yet to claim the third installment of stimulus payments that were sent under the $1.9 trillion US bailout can still do so — if they file a 2021 tax return.
The plan, one of the first major pieces of legislation passed by the Democratic-controlled Congress and signed into law by President Joe Biden, included rent assistance, tax refunds, vaccine distribution funds and direct payments to Americans in trouble because of the coronavirus. pandemic.
The federal government under the Trump administration began sending direct checks to Americans in the early days of the coronavirus pandemic, when state governors began imposing lockdowns and business closures to mitigate the spread of the virus. .
Households should check their mailboxes for letters from the IRS, according to the Washington Post.
Americans can claim the third stimulus check even if they had no income last year – although there are income caps.
Those with adjusted gross income — which is gross income less certain adjustments — of $75,000 or less are eligible to get the full $1,400.
Those who filed as head of household and earned at least $112,500 were not eligible for stimulus payments.
Married couples who jointly deposited and earned less than $150,000 were also eligible for stimulus checks of up to $2,800.
Taxpayers could also claim checks for $1,400 for each dependent, which includes older dependents, students, disabled adult children or parents who are cared for by their children.
Households filing a 2021 return could also be eligible for the expanded child tax credit and working income tax credit.
The US bailout increased the earned income tax credit from $543 to $1,502. Those with one child could earn up to $3,618 in earned income tax credit, while those with two children can claim $5,980.
Households with three children would be entitled to an earned income tax credit of $6,728.
The plan also increased the child tax credit to $3,600 for children 5 and under and $3,000 for children ages 6 to 17. Before the pandemic, the child tax credit was capped at $2,000 per child under 17.
“For 2021, for the first time, families can take advantage of the child tax credit, even if they don’t owe tax and even if they don’t have a job or a business,” said the IRS spokesman Eric Smith at the Washington Post.
“This mailing was designed to reach people who don’t have a file and who are mostly on modest incomes,” Smith said.
The IRS will make its online “Free File” program available to Americans until November 17. The agency urges filers to submit their returns electronically for maximum speed.
The agency on Tuesday announced inflation-adjusted tax brackets for next year — and the result could be that Americans will owe the federal government less because of soaring consumer prices.
The IRS issued a statement on Tuesday announcing that its tax brackets would increase by about 7% in an effort to offset record levels of inflation.
This means that those whose salaries have not kept up with inflation could be eligible to land in lower tax brackets, which would force them to pay less tax.
New York Post