Stimulus check update: Watch for this IRS letter to see if you get more money



Tax season is now upon us, and it’s time to make sure you received all of your possible stimulus money. Most Americans received their full stimulus check payments in 2021. However, if you’re not sure you got enough money in your third stimulus check, be sure to keep an eye out for Letter 6475, Your Third Economic Impact Payment from the IRS.

As explained by the IRS, that letter will “help Economic Impact Payment recipients determine if they are entitled to and should claim the recovery rebate credit on their 2021 tax returns when they file in 2022.”

The third stimulus checks were mailed by the federal government between March and December 2021, following passage of the American Rescue Plan. In that third round of Economic Impact Payments, the IRS sent Americans more than 160 million checks of up to $1,400 per adult, plus additional amounts of $1,400 for each dependent.

If you think you qualified for a third stimulus check and never received one, you won’t receive Letter 6475. Instead, you’ll need to create an IRS online account to view the amount of your Economic Impact Payments. If you confirm you didn’t receive a third stimulus check and you are eligible, you can get that money by claiming the recovery rebate tax credit on your 2021 tax return.

Additionally, if the IRS based your third stimulus payment on your 2019 or 2020 taxes but you earned less money in 2021, you’ll need the documentation to claim any additional money from an adjusted recovery credit.

Here’s how to make sure you get all the stimulus money you’re eligible for. Also, learn how parents can get the rest of their expanded child tax credit money in 2022 and when to file your taxes in 2021.

Why is the IRS sending me Letter 6475?

“The Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return,” the IRS said in a January release, including personal information — like your name and address — and the total amount sent in your third stimulus payment.

This could include “plus-up” payments, the additional funds the IRS sent to people who were eligible for a larger amount based on their 2019 or 2020 tax returns, or information received from the Social Security Administration, Department of Veterans’ Affairs or the Railroad Retirement Board.

You may have already received a Letter 1444-C, which showed the amount you were paid and how it was delivered, but that’s not what you want to use to prepare your 2021 return.

Do I really need to hold on to the letter?

You should always save tax return-related documents, says Mark Steber, chief tax information officer at Jackson Hewitt: W2s, interest statements and IRS letters are a good record of your account “in case anything comes along in the next two or three years,” he says.

“It’s always important, but especially important if you’re due more money — particularly if you had a new baby, adopted a child, fostered a child, it’s your year for split shared custody or any number of additional life changes,” Steber told CNET. “All of these situations would lend themselves to an additional payment.”

What do I do with Letter 6475?

Hold onto it until you or your tax preparer are ready to file your 2021 federal return, then use the amount shown on your Recovery Rebate Worksheet to determine if any credit applies.

“Having the wrong amount on your return could trigger a manual review,” according to the H&R Block website, which could delay a refund for weeks…Read more>>

Source:-cnet

Register Form

Name
Email Address
Phone No