The Internal Revenue Service (IRS) issued a new reminder to taxpayers about pandemic-era stimulus checks. Both the federal and state governments are stepping up with direct financial relief under these unprecedented circumstances. This allowance can be as high as $1,400 per person. Even if you missed the funds this year, fear not! You will need to do this on your 2021 federal tax return, due no later than April 15, 2024.
All four of the 2021 stimulus payments were larger—up to $2,800 for married couples. The recovery rebate credit serves as a way for those who did not receive these payments to access the funds. This credit provides substantial benefits to families with qualifying dependents. A family of four might claim as much as $5,600!
Sadly, at least 20 million taxpayers claimed that they never received their stimulus payments. To start, the IRS does have a plan to address this weakness. They will be issuing “targeted advance payments” to approximately 1 million taxpayers who failed to claim the recovery rebate credit in 2021. Though small, this initiative would be a step toward making sure financial assistance goes to those who need it the most.
Eligibility for the recovery rebate credit is phased out at higher income levels. For single filers, the phaseout starts at an adjusted gross income (AGI) of $75,000. The credit fully phases out as the AGI hits $80,000. For the case of married couples filing jointly, the phaseout begins at $150,000 and ends at an AGI of $160,000. These set income limits set the maximum amount of money individuals and families can take home.
Taxpayers can learn how much stimulus payment(s) they received and if they’re eligible for any additional payments by logging into an IRS online account. This new platform provides filers with an easy way to track the status of their payments. Most payments should have been received through direct deposit or mailed paper checks by the end of January 2025.