Even if Congress does not pass legislation for additional stimulus checks, some Americans will be eligible for a $1,400 check this year.
Due to a bitter fight between Republicans and Democrats in 2020 over stimulus checks, most Americans have already received their allotment. If you’re eligible for the full $1,400 payment, you’ll be able to claim additional payments on your taxes.
If you have a child in 2021, you may be eligible for the full $1,400 payment. Why?
To calculate the 2021 Economic Impact Payments, the payments were based on a person’s 2020 or 2019 returns. So, any eligible dependents who joined the family last year would have been excluded from the payment.
Reclaiming a child as a dependent on your 2021 tax return is an option for those who qualify for the Recovery Rebate Credit. The child must be under the age of 19 at the end of the year, unless they are a student and a child, brother, sister, foster child, stepsibling, half-brother or half-sister, or a descendant of any of them; otherwise, they cannot be eligible.
The third stimulus payment, unlike the first two, allowed all dependents, regardless of age, to be eligible for assistance. The $1,400 payment could be available to people who bring in a parent, grandparent, or another eligible dependent to their household.
Those who didn’t have a dependent in 2021 may be eligible for the Recovery Rebate Credit on their 2021 tax return even if they didn’t add one in that year.
People who lose their jobs in 2021 but are still eligible for economic impact payments in 2021 may be eligible for additional funds because the payments are based on their 2020 income. Because of the income cap, a single filer making $80,000 in 2020 would not have been eligible for a stimulus check. However, if their AGI falls to $75,000 in 2020, they will be able to deduct the full $1,400 from their 2019 taxes.
Letter 6475 was sent out by the Internal Revenue Service at the end of January, and it details a person’s Economic Impact Payment for 2020. Using the letter, taxpayers can determine whether or not they owe additional money and whether or not they are eligible to claim the Recovery Rebate Credit when they file their taxes.
Anyone who believes they are entitled to more money than they have received should file their taxes carefully this year, as it will be their last opportunity to receive the money they are entitled to.