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If you have not received your third stimulus payment or received a partial amount and you are entitled to more, the IRS will give you another chance – but time is running out to demand it.
In January, the IRS announced it all third stimulus payments had been issued. However, some taxpayers may still require payment on their 2021. tax return. The deadline for submitting your 2021 tax is April 18th.
More than 175 million third stimulus payments totaling over $ 400 billion were sent out as of March 2021 as part of American Rescue Plan Act.
How to claim your missing third stimulus payment on your 2021 tax return
You must request any missing third stimulus payments on your 2021 tax return by claim the recovery discount.
This is the case if you received a partial amount (less than the full stimulus payment amount of $ 1,400) or were not previously eligible for the third stimulus payment.
Let’s say you are single and your income for the tax years 2020 and 2019 exceeds the threshold (which we will discuss later). However, you lost your job in 2021, so your income dropped drastically. You can now claim the tax deduction for recovery discount as your earnings fell below the threshold.
Families who added dependents (for example, you had or adopted a child) may also be able to claim the credit.
In addition, a few lingering taxpayers who file taxes using ITINs may not have received payments for their eligible relatives who have CPR numbers.
You must complete the tax credit recovery worksheet and submit it along with your 2021. tax return. If you are using a tax program, it should guide you through the process. Remember, the IRS predicted one frustrating and slow tax season this year, submit your return as soon as possible.
Before filling out the worksheet, you need to know the amount of any third incentive payments received for you, your spouse and any relatives. The worksheet will also request your adjusted gross income (AGI) for the year to determine your eligibility.
If you are unsure of the size of your third stimulus payment, you should review yours IRS online account or use Get my payment app. You can also refer to yours Message 1444-Ca letter sent by the IRS to recipients showing the third stimulus payment amount for 2021.
IRS began sending letter 6475 to taxpayers in January—The letter confirms the total amount of the third stimulus payments received for the 2021 tax year.
Once you have determined your correct amount for the repayment rebate, you must report it on line 30 of your 2021 tax return.
Unlike direct stimulus payments, where payments were issued directly by the federal government to eligible individuals, Recovery Rebate Tax Credit will either reduce any taxes owed or increase your tax refund.
What to do if you can not find your stimulus check
If your IRS online account shows that you should have received an incentive payment but you did not receive it, there is a chance that it could have been lost by post. Or you may have thrown out the prepaid debit card you received.
If you have lost your stimulus check or suspect it has been stolen, you can apply to the IRS track your payment. If the IRS determines that your check has not been redeemed, it will issue a credit to your account. It can not reissue your payment, but you can claim payment on your 2021 tax return by using the worksheet for recovery discount.
If a tracking is initiated and the IRS determines that the check was not redeemed, the IRS will credit your account for this payment. However, the IRS cannot reissue your payment. Instead, you should claim the 2021 recovery rebate credit on your 2021 tax return if you are eligible.
If you lost your EIP card, a prepaid debit card on which some people received their stimulus payment, contact card issuer MetaBank to request a replacement.
Who qualifies for the third stimulus payment?
Generally, if you are a U.S. citizen (or alien resident in the United States) and are not dependent on another taxpayer, you are eligible for the full third incentive payment. In addition, your adjusted gross income (AGI) may not exceed:
- $ 150,000 for joint filing
- $ 112,500 for household heads
- $ 75,000 for single files
A partial payment may be available if your income exceeds the thresholds. However, you will not receive any payment if your AGI is at least:
- $ 160,000 for joint marriage filing
- $ 120,000 for household heads
- $ 80,000 for single files
The full amount of the third stimulus payment is $ 1,400 per. person ($ 2,800 for married couples filing a joint tax return) and an additional $ 1,400 for each qualifying dependent.