The stimulus check-filled year of 2021 is coming to an end, with only four days left; the entire picture along these lines shifts dramatically.
In 2022, there will no longer be any monthly Child Tax Credit payments. However, individuals will be able to claim a stimulus-related tax break as early as next month when they file their federal tax return. In that regard, the IRS is preparing a large mailing of letters that you'll need to employ.
$1,400 stimulus check deadline looms
In addition, the IRS is rushing to complete the final mailing of a certain type of stimulus check. A plus-up payment is what it's called, and the remaining ones will be sent out before the end of the week.
Per BGR, eligible taxpayers can receive up to $1,400 through this program. It is even better because they don't have to go out of their way to receive it. The IRS is automatically determining people's eligibility and issuing checks.
These are "supplemental payments for taxpayers who received payments based on their 2019 tax returns but are qualified for a new or bigger payment based on their newly submitted 2020 tax returns," according to the IRS. Importantly, the IRS must get these payments out the door by December 31. If you're awaiting a payment, you may also check the status of it here.
The IRS will explain everything in a letter called Letter 6475 that will be sent out soon. Keep that letter because you'll want to double-check the information on it against the information on your next federal tax return.
Those who received a stimulus check the prior year will receive plus-up payments in 2019, according to their 2019 tax returns or Social Security Administration information. According to IRS.gov, you will make less money in 2020 than you did in 2019.
Apart from that, the IRS has stated that non-filers will be obliged to submit a 2020 tax return and claim all of their qualifying dependents. Individuals earning $72,000 or less per year are eligible to file under their Free File Program, according to The East County Gazette.
To be considered for the said program, you must file your 2020 tax return, which the IRS will process and credit the additional stimulus to any eligible dependents. The project must be completed by December 31, 2021.
What does it take to get a $1,400 stimulus check next year?
New parents may have lost out on dependent stimulus checks in 2021, but they will be eligible for the $1,400 stimulus checks and the enhanced Child Tax Credit payment in the coming year. The American Rescue Plan provided compensation to parents for dependents which amounted to $1,400 per child.
When the American Rescue Plan was adopted, however, some couples had not yet welcomed their newborn. Eligible families must file their 2021 tax returns the following year. Once the tax return is filed, they will receive their stimulus payment.
Those parents will be able to claim their new dependent when filing their taxes in 2021. It's worth noting that there's no limit to the number of additional dependents that may be claimed so parents who have more than one child will be eligible for several payments. In 2020, there were over 3.6 million births, and the figure is likely to be similar this year, as per The Sun.
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