Stimulus Update: IRS Announces All Third-Round Economic Impact Payments Have Been Sent
The IRS announced on Thursday, Jan. 26 that all third-round Economic Impact Payments have been sent out. However, people can still claim any remaining stimulus money they’re owed on their 2021 income tax return as part of their 2021 Recovery Rebate Credit.
The IRS noted that some Economic Impact Payments from 2021, which were advance payments of the 2021 Recovery Rebate Credit, may still be in the mail but the IRS is no longer issuing payments as required by law. Through Dec. 31, the IRS issued more than 175 million third-round payments totaling over $400 billion to individuals and families.
The IRS began issuing Letter 6475, Your Third Economic Impact Payment, in late January to recipients of the third-round Economic Impact Payment. This letter will help recipients determine if they should claim the Recovery Rebate Credit on their 2021 tax returns.
According to the IRS, some families may not have received the full amount of their third-round Economic Impact Payment because their circumstances in 2021 were different than they were in 2020. Reasons include:
- Parents or guardians who added a new qualifying child to their family in 2021 and who did not already receive a third-round Economic Impact Payment for that child may be eligible to receive up to $1,400 for that child by claiming the credit.
- Families who added a dependent may be eligible to receive a 2021 Recovery Rebate Credit of up to $1,400.
- Single filers with income above $80,000 in 2020 but less than that amount in 2021. For married couples filing jointly, this amount is $160,000. For head of household, the amount is $120,000. Those eligible may be able to receive up to $1,400 per person.
- Single filers with income between $75,000 and $80,000 in 2020 but had lower incomes in 2021. For married couples filing jointly, incomes between $150,000 and $160,000. For head of household, income between $112,500 and $120,000. Those eligible may be able to receive the 2021 Recovery Rebate Credit.
The IRS began accepting tax returns on Jan. 24 and you must claim the 2021 Recovery Rebate Credit on your 2021 income tax return to get this money.
To claim the credit, you need to know the total amount of their third-round Economic Impact Payment, including any Plus-Up Payments, that they received. This amount can be viewed through your IRS Online Account and Letter 6475. For married couples filing jointly, you will both need to log into your individual Online Account or review your own letter.
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