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Stimulus checks: 9 million people have until Nov. 17 to claim payments

The IRS began alerting 9 million people last month that they could still claim thousands in stimulus and child tax credit payments. If you are one of those people, you have only one day left to claim the money, with the tax agency setting November 17 as the deadline to receive the money.

The IRS said it began sending letters in mid-October to reach millions of people who haven’t claimed benefits such as stimulus checks, the expanded child tax credit and the earned income tax credit.

The IRS said eligible people must file tax forms by Thursday, November 17, to claim the money.

In distributing billions of dollars in stimulus payments to help families stay afloat financially during the pandemic, the IRS relies on tax returns to determine eligibility as well as where to send payments, Because tax returns include bank account information or a home address for sending checks. , But nearly 9 million Americans haven’t claimed the money yet because they haven’t filed 2021 tax returns, according to the agency.

The IRS said the letters will inform people that they may be eligible and how to claim the money.

Who is receiving the letter?

The IRS said that 9 million people, which were identified by the Treasury’s Tax Analysis Office, are those who are not required to file taxes because their income is too low. For example, single taxpayers under age 65 typically don’t have to file a tax return if they earn less than $12,550 a year, while that goes up to $14,250 for singles over 65.

What credits are available?

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

  • 2021 Recovery Rebate Credit
  • the child tax credit
  • 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 eligible children, claiming them on tax returns.

That means a family of four could qualify for up to $5,600 in stimulus money, assuming they earn under the income limits 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 gradually phase out for people earning above those thresholds.

What is Child Tax Credit?

The enhanced child tax credit would increase this benefit to $3,600 per child in 2021, up from its normal amount of $2,000 per child. The purpose of the tax credit is to help parents pay for the cost of raising children.

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

What is the Earned Income Tax Credit?

The 2021 US rescue plan also boosted the Earned Income Tax Credit, which has been available for decades and is aimed at helping low-income workers. Before the law, childless workers between 25 and 64 could only get up to $538, but the Pandemic law raised that to $1,502.

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

Most people can claim the EITC if they earn less than $21,430 for single taxpayers or $27,380 for married people filing jointly.

How do I claim these benefits?

The IRS is urging people who believe they are eligible for the tax credit but haven’t filed a tax return to go ahead and file a return with the tax agency, even if they haven’t yet received a letter from the IRS. Are. But the deadline for filing returns to claim these benefits is Thursday, November 17.

“The IRS reminds the public that there is no penalty for refunds claimed on tax returns filed after the April 2022 regular tax deadline,” the IRS said.

People can claim benefits in a few ways:

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

The IRS said it urges people to file their tax forms electronically and choose direct deposit to receive their tax credits as soon as possible.

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