Have you recently received correspondence from the Internal Revenue Service (IRS)?
If that’s the case, keep an eye out for Letter 6475, which the Internal Revenue Service started sending you in late January and contains information regarding your 2021 Economic Impact Payment.
The IRS letter may assist taxpayers in determining if they owe more money and whether they are entitled to claim the Recovery Rebate Credit on their 2021 tax return if they submit this year. Even if you aren’t awarded any further funds, the letter is required to declare any stimulus payments on your taxes.
If you got advance child tax credit payments, like many other families, you’ll also need IRS Letter 6419 before submitting your taxes. However, you should be aware that some letters include incorrect quantities, so double-check yours.
In addition to the letters for both stimulus payments and child tax credits, tax filers may verify the number of their payments in their Online Account, which must be set up on IRS.gov.
Did I get a third stimulus payment?
In March 2021, the majority of recipients got their third stimulus payouts. For millions, but not all, of the taxpayers who qualified for the stimulus money, the IRS issued “plus up” payments – additional money in addition to the original direct deposit or stimulus check sent last year.
The third stimulus payment was recognized as money received in advance of the Recovery Rebate Credit, which you may claim on your federal income tax return in 2021.
How much is the Recovery Rebate Credit for 2021?
You’ll want to double-check that you’ve gotten the entire amount of the third stimulus you’re entitled to this tax season. If you owe more money, you must submit a 2021 federal income tax return to claim the Recovery Rebate Credit.
On 2021 returns, the maximum Recovery Rebate Credit is $1,400 per person, including any qualified dependents declared on the tax return. For example, a married couple with no dependents may be eligible for up to $2,800.
Also Read: Stimulus Checks: Here’s Why You Might Still Wait for Yours
Who is eligible for the rebate credit? Parents of babies born in 2021 and more.
Since you filed your federal income tax returns for 2019 or 2020, a lot might have happened in your life. For example, if a new kid was born in 2021, you could use the Recovery Rebate Credit to collect up to $1,400 in back taxes.
The parents must be able to list their kid as a dependent on their 2021 tax return and meet the credit’s income requirements.
What does IRS Letter 6475 look like?
“Your Third Economic Impact Payment(s)” is written boldly at the top of these letters, which began being sent out in late January. The phrase “Letter 6475” may also be seen on the bottom right-hand corner.
Earlier in the program, the IRS issued a “Notice 1444-C” indicating that the third Economic Impact Payment for the tax year 2021 had been advanced. You may also refer to the letter from last year if you kept it.
You may have gotten more than one notification if you received stimulus money at different times during the year. You’ll get a total monetary amount from letter 6475.
Also Read: Millions of Americans will receive an IRS Refund Stimulus Check of $3,600.