There will be certain Americans who are eligible for a $1,400 stimulus check this year even if Congress does not enact legislation to provide for another batch of checks.
After winning the first round of the 2020 election, Republicans and Democrats fought bitterly over the topic of stimulus checks, and the vast majority of Americans have already received all of the money they are likely to get. While most Americans will be able to claim additional payments when they file their taxes, others will be able to claim the full $1,400 amount.
It is possible that American families will be eligible for the entire $1,400 payout if they have a child in 2021. Why? Because the Economic Impact Payments for 2021 were based on a person’s 2020 or 2019 tax return, this is the case. As a result, any qualified dependent who joined the family in the previous year would not have been counted toward the payment amount.
The Recovery Rebate Credit can be claimed as a dependent by those who have a kid who qualifies for the credit this year when they file their tax return for the year 2021. Unless the child is a student and a child, brother, sister, foster child, stepsibling, half-brother or half-sister or a descendant of any of the foregoing, they must be under the age of 19 at the end of the year in order to be considered eligible.
In contrast to the first two rounds of payments, which restricted dependent eligibility to minors only, the third round of payments included provisions for dependents of all ages to receive benefits. In this case, anyone who brings in a qualifying dependent (such as a parent or grandparent) to their home may also be entitled for a $1,400 payment.
The Recovery Rebate Credit may still be available to people who didn’t add a dependent to their family in 2021, and they may be eligible to claim it on their 2021 tax return.
Because economic impact payments for 2021 are dependent on a person’s income in 2020, they may be eligible for greater money if they see a decrease in income in 2021. A single filer who earned $80,000 in 2020, for example, would not have qualified for a stimulus check because of the income restriction in place.
But if their adjusted gross income falls to $75,000 in 2020, they will be eligible to claim the entire $1,400 when they file their tax return for this year and every subsequent year. Letter 6475, which was sent out by the Internal Revenue Service at the end of January, is meant to provide information on a person’s 2020 Economic Impact Payment.
It is possible that taxpayers will find the letter useful in deciding if they are entitled additional money and whether they are able to claim the Recovery Rebate Credit when filing their taxes.
The filing of taxes this year will be the last opportunity for anyone who believes they may be entitled to more money than they have received to receive the monies in question.
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