The Internal Revenue Service (IRS) is working to distribute stimulus checks to eligible taxpayers who missed out on a special credit back in 2021. This payment could be especially helpful for many people who are struggling financially, particularly Black Americans who often face lower and more unstable incomes. The IRS is aiming to provide these payments automatically, making it easier for those eligible to receive the money they’re owed.
What Is the Stimulus Check?
In response to the COVID-19 pandemic, the U.S. government issued a series of stimulus checks to help Americans who were financially impacted by the crisis. These payments were called Economic Impact Payments (EIP). In 2021, the IRS found that some eligible taxpayers missed out on a special credit called the Recovery Rebate Credit, which could have increased the amount they received from the stimulus checks. Now, the IRS is working to correct this and send out payments to about 1 million taxpayers who did not claim the credit when they filed their 2021 taxes.
Why Are These Payments Important?
These stimulus payments are particularly important because of the financial strain caused by the pandemic. In 2023, research from the U.S. Census Bureau showed a large gap between the median incomes of Black and white households. The median income for Black households in 2023 was about $56,490, while for white households, it was $89,050. Given that lower-income households have been hit harder by rising costs and the effects of the pandemic, these payments can offer much-needed relief.
Who Will Receive the Payment?
The IRS plans to send out these payments to taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This round of stimulus payments is part of the third set of checks that were issued to help Americans during the pandemic. The first two rounds were sent out in 2020 and 2021. If you didn’t receive a full payment or any payment during those times, and you were eligible, you may now be receiving the money you were owed.
How Much Can You Expect?
The amount of money you can get depends on your situation. For example, a single person without dependents may receive up to $1,400, while a married couple filing together could get up to $2,800. If they have two qualifying dependents, they might receive up to $5,600. Qualifying dependents include not just children but also older relatives, college students, or adults with disabilities. However, if your income was above a certain limit, you may not qualify for the check.
For individuals, if you earned more than $80,000 in 2021, you wouldn’t be eligible for this credit. For married couples, that income limit is $160,000.
Do You Need to Take Any Action?
If you are eligible for a stimulus check, you don’t need to do anything to receive the payment. The IRS is sending these payments automatically, so you won’t need to file any additional forms or take further action. The agency hopes to make the process as simple as possible for those who missed out on the credit when they filed their taxes.
When Will the Payment Arrive?
The IRS has not given an exact date, but they say that the stimulus checks should arrive by the end of January. The money will be sent to the bank account or address you provided on your 2021 tax return. Keep an eye on your bank account or mailbox, as the payment could already be on its way. Additionally, the IRS will send a letter to eligible taxpayers to let them know that they will be receiving the payment.
Conclusion
The IRS is working hard to correct a mistake made in 2021 and ensure that people who missed out on the Recovery Rebate Credit receive their fair share of stimulus payments. This extra money will be beneficial for many, especially those facing financial difficulties. If you think you might be eligible, check your bank account or mailbox for a payment soon. These stimulus checks can provide much-needed support during challenging times.
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