Stimulus Check Update: $1400 Available Through Recovery Rebate Credit [Eligibility, How to Claim]

The Internal Revenue Service (IRS) has announced that it will no longer distribute $1,400 stimulus checks and plus-up payments to eligible Americans in 2021.

However, whenever taxpayers submit their returns this tax season, they may still be entitled to those payments or additional funds. According to a Treasury Department study, 644,705 persons have yet to get their third stimulus payment in the middle of September. Many of those persons may have gotten the funds since then. It is unknown how many payments have yet to be made.

The IRS has updated information on the Recovery Rebate Credit that customers can use this year to collect any money owing to them from those one-time payments. The American Rescue Plan Act allowed the third wave of stimulus funding last year.

Individuals might get up to $1,400 through the third stimulus checks, according to the rules. Couples who file jointly may be eligible for up to $2,800 in tax relief. In addition, qualified dependents may be entitled to $1,400.

Who is Eligible for Another $1,400 Stimulus Check?

To be eligible, you had to be a US citizen or a resident alien in 2021. A valid Social Security number was also required, however, there are certain exceptions for spouses or dependents. You could not have been claimed as someone else's dependent on a 2020 tax return to be eligible for your payout.

Your adjusted gross income must not exceed specified levels to be eligible for full payment: $75,000 for individuals, $112,500 for heads of household, and $150,000 for married couples. Individuals with adjusted gross incomes of $80,000, heads of household with $120,000, and married couples with $160,000 had their payments tapered away, while married couples with $160,000 had their payments totally cut off, according to CNBC.

Some people, particularly if their circumstances have changed, may be eligible for the entire $1,400 payment or further partial payments. A $1,400 reward may be available to parents who have a child in 2021. Families that added a dependant to their families in 2021, such as a parent, niece or nephew, or grandchild, may also be eligible for an extra $1,400.

Additionally, persons whose wages have been reduced may now be eligible for the funds if their adjusted gross earnings in 2021 are less than the full payment criteria. They may be eligible for partial payments if their wages fall below the phase-out limits.

Those who do not submit tax returns regularly and have yet to do so must do so this year to obtain any possible benefits. The amounts from the Recovery Rebate Credit will either be deducted from your federal tax due or included in your refund, as per Unica News.

How to Claim New Stimulus Check This Year?

The data is available on the official website of the Internal Revenue Service for taxpayers to review. Users may find out how much money they have received in refunds by visiting the website, including links to the necessary information.

If a person receives "Letter 6475," it can also help determine if they're eligible for the recovery rebate credit on their 2021 tax return. This document will include instructions on how to claim the cash, as well as information on how to file a tax return to claim the funds.

The Internal Revenue Service (IRS) delivered over 175 million third-round stimulus checks to payors and beneficiaries in December 2021, according to IRS figures.

On the other hand, some organizations may still be in the process of collecting funding. According to the IRS, the tax credit will be available to parents who have a child in 2021, and families are entitled to claim a dependant on their 2021 tax returns.

Although this hasn't been demonstrated, large higher-income individuals probably have an impact on the third stimulus check. Individuals earning $80,000 in 2020 or couples earning $160,000 in 2020 but experiencing a wage cut in 2021 are likewise likely to be waiting for the most recent buy, California Examiner reported.