Thousands of Americans stand to gain from a new financial relief effort. The Internal Revenue Service is actively sending out notices. These notices target people who haven't claimed their recovery rebate credit yet. With this program, eligible individuals could get up to $1,400.
Deadline Alert for Recovery Rebate Credit
The clock is ticking for potential recipients of the stimulus payment. Form 1040 must be filed by April 15, 2024, to avoid forfeiture of the recovery rebate credit. This date marks the closure of the taxable year, and with it, the opportunity to claim the offered sum dwindles.
At the peak of the COVID-19 crisis, the government authorized three economic impact payments, which were issued in 2020 and 2021. These payments aimed to support citizens, and these financial challenges were unprecedented.
Amended Returns and Filing Requirements
The IRS guidelines are clear. An amended return must be filed to tap into the stimulus check payment. Taxpayers can utilize Form 1040 up to three years after the original due date. It is essential to note income levels do not impede eligibility. Even those with null earnings must file for a chance to receive the stimulus payment. Further, those due for a refund from the IRS can claim any owed amounts within three years from the filing due date.
Who Qualifies for Economic Impact Payments?
Economic Impact Payments (EIPs) were vital to COVID-19 aid. They came out in three rounds throughout 2020 and into mid-2021. To be considered, one must fill out Form 1040. This is necessary even if you usually don't file tax returns due to low income.
Meeting several criteria is essential. To qualify for the 2020 and 2021 stimulus payments, the claimant should be a U.S. citizen or resident alien at the time. They should not be listed as dependents on another's tax return and must possess an active Social Security number before the tax submission cut-off date.
In 2020, individuals earning $75,000 or below were eligible for the full benefits based on 2018 or 2019 data. However, those earning over $75,000 saw diminished returns up to a $99,000 income threshold. For couples filing jointly, the entire stimulus was up to $150,000, gradually decreasing to $198,000. The third stimulus, computed with the 2019 or 2020 tax data, adopted identical income requisites.
If you meet the income qualifications for the 2020 and 2021 stimulus checks but have yet to receive the total amount or any recovery rebate credit, it could still be within reach. Along with U.S. citizenship or resident alien status for the specified years and independence from another's tax return, timely submission of tax returns with a valid Social Security number is mandatory.
Filing Made Easier with the IRS Direct File Program
Looking to the future, the IRS is set to roll out Direct File, a convenient tax filing feature for the 2024 tax year. This system, available at no cost, echoes the experience provided by established tax software solutions. Users can effortlessly complete tax forms through an interactive Q&A process and promptly submit them electronically via the IRS online platform.
