On Wednesday, the IRS announced that it had sent out all of the third-round stimulus checks from the American Rescue Plan, but you still could get extra stimulus checks.
One vital IRS notice required by you to receive any extra money is Letter 6475, Your Third Economic Impact Payment. The letter contains the official record of your “Economic Impact Payment,” or stimulus checks, for last year.
The maximum of U.S. citizens got their entire stimulus check payments last year. Although, if you are not certain, then according to the IRS, Letter 6475 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.”
In that third round of Economic Impact Payments, the IRS gave out U.S. citizens over 160 million checks of up to $1,400 for each adult, plus an extra payment of $1,400 per dependent. If you welcomed a new baby or added an eligible child to your family last year, you are entitled to an extra payment of $1,400 per new child.
In addition to that, the third stimulus payment was calculated based on 2020 taxes. If you had less earlier this year, you will require Letter 6475 to be able to claim any extra amount from an adjusted recovery rebate tax credit on this year’s tax return.
If you haven’t received a third stimulus check ever, you won’t get Letter 6475. Rather, you will be required to create an IRS online account so that you can view the amount of your Economic Impact Payments to which you are entitled to.
If you confirm that you didn’t get a third stimulus check and you are qualified, you can receive that payment by claiming the recovery rebate tax credit on your tax return of 2021.
Here’s how to ensure that you receive the entire stimulus payments you are entitled to. Also, understand how parents can have the enhanced child tax credit payments this year and when to file their taxes in 2022.
Why Is the IRS Sending Me Letter 6475?
In a January release, the IRS said “The Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return,” along with personal details, such as your name and address, and the entire amount is given out in your third stimulus payment.
This could contain “plus-up” payments, the additional money the IRS gave to Americans who were qualified for a bigger amount based on their 2019 or 2020 tax returns, or information gathered from the Social Security Administration, Department of Veterans Affairs, or the Railroad Retirement Board.
You may have already gotten a Letter 1444-C, which contains the amount you were sent and how it was delivered, but that’s not what you want to utilize to prepare your tax return for 2021.
Do I Need to Keep the Letter Securely?
You should always carefully maintain documents related to the tax return, as said by Mark Steber, chief tax information officer at Jackson Hewitt: W2s, interest statements, and IRS letters are a detailed record of your account “in case anything comes along in the next two or three years,” he adds.
Steber told CNET “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,” adding further “All of these situations would lend themselves to an additional payment.”
What Do I Do With Letter 6475?
Keep it properly unless you or your tax preparer are all set to file your 2021 federal return, then utilize the amount mentioned on your Recovery Rebate Worksheet to ascertain if any credit is applicable.
According to the H&R Block website, “Having the wrong amount on your return could trigger a manual review,” which could postpone a refund for weeks.
What if I Can’t Find My Letter?
If you don’t get Letter 6475 (or by any chance lose it), you can have access to all the information about your stimulus payments on your IRS account. If you don’t have one set up, you can create an ID.me account on the IRS website to check your details.