HomeEconomyIn 2022: Are You Owed Money From the $1.6 Billion in Overdue...

In 2022: Are You Owed Money From the $1.6 Billion in Overdue Stimulus Payments?

The Internal Revenue Service advised taxpayers on Wednesday to claim any unclaimed third-round stimulus payments on their 2021 tax returns.

Tax filers have just over two weeks to file before April 18th, which is Tax Day. The IRS has not yet declared a deadline extension.

People who were entitled to the $1,400 payment but did not get it can now claim it during tax season.

People who are missing a stimulus payment or received less than the amount they are eligible for will have to claim a Recovery Rebate Credit on their 2020 or 2021 federal tax returns, according to the Internal Revenue Service, because the IRS is no longer distributing Economic Impact Payments.

The majority of those who are eligible have already received their stimulus funds and will not have to report them on their 2021 tax returns.

According to the IRS, more than 175 million third-round payments totaling more than $400 billion have been issued to taxpayers around the country. In the spring and early summer of 2021, the majority of those payments were made.

Despite this, many people have yet to receive their money.

According to a study released last week by the Treasury Inspector General for Tax Administration, authorities identified 644,705 potentially eligible people who had not received payments totaling $1.6 billion.

What should you do if you haven’t received your third payment?

The IRS advises residents, especially in the early spring and summer of 2021, to double-check their bank accounts to ensure they did not receive the third payment.

In 2022 Are You Owed Money From the $1.6 Billion in Overdue Stimulus Payments (1)
In 2022: Are You Owed Money From the $1.6 Billion in Overdue Stimulus Payments?

People can also examine the entire amount of the third-round Economic Impact Payment granted to them by logging into their IRS Online Account. Each member in a married pair filing jointly will need to enter into their online account.

People should contact the IRS as soon as possible if they confirm they never received the payment and their IRS online accounts reflect a payment amount larger than $0, or if they received a Notice 1444-C or Letter 6475, to see if a payment trace is required.

Also Read:- Here’s How the Us and the Several States Think About Gas Rebates and Other Stimulus Funds

Officials said they don’t have to wait until their tracing is complete to file their 2021 tax return.

Taxpayers have two options when filling out the Recovery Rebate Credit worksheet: either use the amount on Letter 6475 (or the EIP 3 amount from the online account) to calculate the recovery rebate credit amount on line 30 or use the amount of stimulus payment the taxpayer believes they received. (You can read more about it here.)

Those who contact the IRS to track down the amount of the stimulus payment will be notified of the results. If the IRS discovers that the taxpayer did not receive the funds, the recovery rebate credit amount on the tax return will be adjusted, and any refund will be issued.

Also Read:- Figures for the $1,400 in Stimulus Checks Have Been Updated. Because of an Error on Your Tax Form, Your IRS Tax Return May Be Delayed

If taxpayers make a mistake while computing the recovery rebate credit and claim an amount on line 30 for the 2021 Recovery Rebate Credit, the IRS will have to amend the amount and send a notice explaining the changes. Officials warned that if this happens, the processing of the return could be delayed.

What if I’ve already submitted my tax return?

If IRS records reveal no payment was made, an updated return may be required to claim the credit.

If IRS records show that they were not issued a payment, eligible taxpayers who did not claim a recovery rebate credit on their 2021 tax return (so line 30 is blank or $0) will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return to claim the remaining amount of stimulus money.

Also Read:- Checks for Stimulus in 2022: Is Your State Distributing Funds This Year?

This covers those who believe they did not get the full amount of their third-round Economic Impact Payment because their circumstances in 2021 differed from those in 2020.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular