Got Letter From IRS? You Need To Do This To Claim Coronavirus Stimulus Check And Credits

0
Got Letter From IRS? You Need To Do This To Claim Coronavirus Stimulus Check And Credits
SharonMcCutcheon / Pixabay

There was a report last week that about 10 million people haven’t yet claimed their federal stimulus checks or economic impact payments, as well as child tax credits. The IRS is now making another effort to reach these people by sending them letters to inform them that they may be eligible for COVID-19 federal benefits.

If you get any such letter from the IRS, then detailed below is what you need to do to claim the coronavirus stimulus check and credits.

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q3 2022 hedge fund letters, conferences and more

Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More

 

What Benefits Can Still Be Claimed?

Last week, the IRS started sending letters to people who they believe could be eligible for the stimulus checks and tax credits. The agency estimates that over nine million people could be missing out on COVID-19 payments by not filing a 2021 federal tax return.

The money that the agency is talking about includes the third round of stimulus checks of up to $1,400, an expanded child tax credit of up to $3,600 per child, and the earned income tax credit worth up to $1,502 for childless workers.

The American Rescue Plan, which was approved in 2021, approved the stimulus checks through the Recovery Rebate Credit, as well as made existing child tax credits and earned income tax credits more generous. As a result, more households became eligible for federal monetary benefits, including those who don’t usually file tax returns.

It is estimated that millions of taxpayers fail to claim credits every year even though they are eligible for them. Two primary reasons for this, as per a recent report from the Bipartisan Policy Center, are misperceptions about qualifications and claiming complexity.

How To Claim Coronavirus Stimulus Check And Credits

If you received a letter from the IRS recently, then here is what you need to do to claim the coronavirus stimulus check and credits. If you get the letter, then it is very likely that you need to file a tax return to claim the available money.

Several free services are available to help people file tax returns. However, most of these services come with November deadlines. For instance, the IRS Free File, which allows people to file returns for free, remains open until November 17. This tool is available only to those with an adjusted gross income of $73,000 or less.

Similarly, ChildTaxCredit.gov allows individuals and families (both with and without children) to file their 2021 return to claim the stimulus check or child tax credit. Another available tool is GetCTC.org, which allows people to claim the third stimulus check, the child tax credit and the earned income tax credits. This tool is also available through November 15.

People can also get help from the IRS Volunteer Income Tax Assistance Program. This program could help them in navigating the tax-filing process. To ensure a smooth filing process, the IRS recommends users gather information from certain forms, including all W-2s and 1099s, and letters issued by the IRS.

No posts to display