9 million people have one day to claim U.S. stimulus checks

9 million people have one day to claim U.S. stimulus checks

in one day

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Last month, the IRS notified 9 million people that they still could claim thousands in Child Tax Credit and stimulus payments. If you are one of those people, you have only one day left to claim the funds, with the tax agency setting a deadline of November 17 to get the money.

The IRS stated that it began mailing letters in mid-October to reach millions who have not claimed benefits like stimulus checks, expanded Child Tax Credit, and the Earned income Tax Credit.

People who are eligible must file a tax form by end of day on Thursday, November 17 to claim the money, the IRS said. The filing site is open until midnight E.T. on Thursday, but will be closed at 12: 01 a.m. ET on Friday, November 18.

The IRS relied on tax returns for eligibility determination and where to send payments. Tax returns include information about bank accounts or addresses to mail the checks. But about 9 million Americans have yet to claim the funds because they didn’t file a 2021 tax return, according to the agency.

The IRS stated that the letters will inform individuals if they are eligible and how to claim the funds.

Who is receiving the letters? The IRS stated that the 9 million people who received the letters were not required to file taxes due to their low incomes. Single taxpayers under 65 typically don’t have to file a tax return if they earn less than $12,550 a year, for instance, while that goes up to $14,250 for single people over 65. What credits are available?

The people who received the letters may qualify for one or all of the following tax credits:

  • The 2021 Recovery Rebate Credit
  • The Child Tax Credit
  • The Earned Income Tax Credit

What is the 2021 Recovery Rebate Credit?

That’s the official name of the third round of stimulus checks authorized by lawmakers during the pandemic, providing up to $1,400 per eligible person, including qualifying children claimed on a tax return.

That means a family of four could qualify up to $5,600 in stimulus money, assuming they earn under the income limit for the program. Under the law, the full amount is available to single taxpayers who earn less than $75,000 and married couples who earn less than $150,000.

Payments will be gradually phased out for those who earn more than the thresholds. What is the Child Tax Credit?

The enhanced Child Tax Credit increased this benefit as high as $3,600 a child in 2021, up from its normal amount of $2,000 per child. The tax credit is intended to help parents pay for the cost associated with raising children.

The IRS sent monthly checks to parents with eligible children for the last six months of 2021, which represented half of the annual credit. The IRS said that families can claim the other half of the credit now even if they received monthly checks in the second half of 2021.

What’s the Earned Income Credit?

The American Rescue Plan of 2021 also boosted the Earned Income Tax Credit, which has been available for decades and is aimed at helping low-income workers. Prior to the legislation, childless workers between 25 to 64 could only get up to $538, but the pandemic law boosted that to $1,502.

The law also increased the amount that can be claimed by working families with children, increasing it to as high as $6,728 for parents with three children.

Most people can claim the EITC if they earn under $21,430 for single taxpayers or $27,380 for married people filing jointly. How do I claim these benefits The IRS encourages people who believe they are eligible to receive tax credits, but have not filed a tax return, to file a return with tax agency even if they haven’t received a letter. But the deadline for filing a return to claim these benefits is Thursday, November 17.

“The IRS reminds people that there’s no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline,” the IRS said.

There are a few ways people can claim the benefits:

  • File a return with Free File before November 17, 2022. Free File is available to people who earn less than $73,000.
  • File a simplified 2021 tax return through GetCTC before November 15, 2022.

The IRS said it urges people to file their tax form electronically and to choose direct deposit in order to get their tax credits as soon as possible.

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