If a taxpayer is eligible for more money, it will either reduce any tax the person owes for 2021 or be included in a tax refund.(CBS NEWS) - President Joe Biden’s $1.9 trillion coronavirus relief plan would provide a third round of federal stimulus checks to millions of Americans. Those who believe they are due more money must file a 2021 tax return, even if they don't usually file taxes, and claim what's called the Recovery Rebate Credit. Here's how to claim the payment on your tax return Families that added another kind of dependent, such as an aging parent or grandchild, may also be eligible. Individuals and families who added a child in 2021 - through birth, adoption or foster care - could be eligible for additional money. Those include single filers who had incomes above $80,000 in 2020 but less than this amount in 2021 married couples who filed a joint return and had incomes above $160,000 in 2020 but less than this amount in 2021 and head of household filers who had incomes above $120,000 in 2020 but less than this amount in 2021, according to the IRS. Taxpayers who earned less money in 2021 than the previous year may be eligible for more money than they initially received from the third round of stimulus payments. But their spouses and children are eligible as long as they have Social Security numbers. Undocumented immigrants who don't have Social Security numbers are not eligible for the payments. Individuals who earn at least $80,000 a year of adjusted gross income, heads of households who earn at least $120,000 and married couples who earn at least $160,000 are not eligible for any money - regardless of how many dependents they have. Individuals earning less than $75,000 of adjusted gross income, heads of households (like single parents) earning less than $112,500 and married couples earning less than $150,000 are eligible to receive the full amount of $1,400 per person.īut the payments gradually phase out as household income increases. Generally, low- and middle-income US citizens and US resident aliens are eligible for either a full or partial third-round stimulus payment. Earlier rounds limited the payments to dependents under the age of 17. A married couple with two children, for example, can receive a maximum of $5,600.įamilies are allowed to receive up to $1,400 for each dependent of any age. The third round of stimulus payments is worth up to $1,400 per person. Those with incomes so low they don't have to file taxes may have never received their payment because the Internal Revenue Service did not have their information. Other people may have missed out on the stimulus payment altogether. If a taxpayer's income or family size changed in 2021, the individual may be eligible for more money. The payments were authorized by the American Rescue Plan in March 2021 and were meant to help people struggling financially because of the Covid-19 pandemic.īut the payments were calculated last year based on the most recent federal tax return on file at the time. The vast majority of the third stimulus payments were automatically delivered to taxpayers' bank accounts or via a check in the mail last spring. There's still time to claim a third stimulus payment worth up to $1,400 per person.Įligible taxpayers who didn't receive the payment or may be due more money than they initially received are allowed to claim a tax credit on their 2021 federal tax return by the April 18 deadline. As part of the relief package, all Californians with a registered vehicle would receive $400 tax rebates on a debit card, but when can taxpayers expect to see that money if the plan gets approved?
0 Comments
Leave a Reply. |