After the emergence of the COVID-19 pandemic, both Donald Trump and Joe Biden’s administrations sent stimulus checks, officially termed as Economic Impact Payments.
Three separate stimulus checks were given out to Americans having a low and medium income, with a payment of $1,200 in April 2020, another of $600 in December 2020, and the next one of $1,400 in March last year.
Although, some families haven’t still claimed the entire amount of stimulus payment that they were entitled to. It isn’t still too late, however, as these families might still be capable of backdating their stimulus checks.
The Internal Revenue Service (IRS) explains “People who are missing a stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2020 or 2021 federal tax return.”
What Is the Recovery Rebate Credit?
There is an elaborated section on the IRS website that provides information on how the Recovery Rebate Credit process operates.
The IRS explains “If you didn’t qualify for a third Economic Impact Payment or got less than the full amount, you may be eligible to claim the 2021 Recovery Rebate Credit when you file your 2021 tax return,” adding “You must file a return to claim the credit, even if you don’t usually file a tax return.
The credit is based on your 2021 tax year information, so any third Economic Impact Payments you received will reduce the amount of the credit you’re eligible for.
Your 2021 Recovery Rebate Credit will reduce any tax you owe for 2021 or be included in your tax refund. You will need the total amount of your third Economic Impact payment and any plus-up payments to claim the 2021 Recovery Rebate Credit.”
There Are Four Reasons Due to Which You May Be Due Extra Stimulus Check Money This Year
Also, families who didn’t claim the payment they were entitled to during the time, certain people are now entitled to additional stimulus checks as their situations have altered.
There are four main circumstances mentioned below where this could be the case:
- If you welcomed a baby last year and claim the child as a dependent on your tax return of 2021.
- If your family added a new dependent, like for example a parent, grandchild, or even a foster child, last year and claim them as a dependent on your 2021 tax return.
- If you are a single filer who had earnings of more than $80,000 in 2020 but below that last year; if you are a married couple who had earnings of more than $160,000 in 2020 but below that last year; and if you are ahead of family filer who had to earn of more than $120,000 in 2020 but below that earlier this year.
- If you are a single filer who had earnings between $75,000 and $80,000 in 2020 but below that earlier this year; if you are a married couple who had earnings between $150,000 and $160,000 in 2020 but below that last year; and if you are ahead of family filer who had earnings between $112,500 and $120,000 in 2020 but below that last year.