STIMULUS payments that could be worth thousands are owed to families across the United States.
With tax season underway, it’s important to be aware of any money you may be owed by the government before filing 2021 taxes.
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There are a couple of reasons that the government might own a family or a single taxpayer some cash, and several of those are listed below.
Advance child tax credits
If you did not receive any advance child tax credit payments in 2021, you may be owed money, if you qualify.
Families may have qualified but did not receive any CTC payments because of having non-filer status, which meant there was a lack of information on file with the Internal Revenue Service (IRS).
Without recent tax information on file, the IRS cannot automatically determine the household’s eligibility for the child tax credit, so no monthly payments were issued.
More child tax credits
The advanced child tax credit payments in 2021 only accounted for half the total of the credits.
The other half has to be claimed when you file your 2021 tax return.
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You may be owed up to $1,800 per qualifying child.
The total child tax credit is $3,600 annually for children under age six and $3,000 for children ages six to 17, with an income cap of $150,000 for couples who file jointly.
Meanwhile, eligible families who opted out of the advance child tax credit payments in 2021 will receive the full child tax credit when they file 2021 taxes.
The IRS started mailing out Letter 6419 in late December 2021 and will continue into January.
The letter is to help taxpayers understand all of the child tax credits they are entitled to.
Babies born in 2021
If you had a baby in 2021 or adopted one, you may qualify for another stimulus payment worth up to $1,400 in 2022 as well as $3,600 in child tax credits.
Babies born in 2021 were eligible to qualify for the third stimulus payment, which was issued in March 2021.
The money would not have been automatically issued because the IRS would not have had the information about your new family member on file.
This money can be claimed on your 2021 taxes if you qualify based on the income restrictions for the third stimulus payment.
Income eligibility requirements were a maximum of $150,000 for married people who file jointly or $75,000 for individuals.
Income changes
If you had any significant drop in income from 2020 to 2021 you may also qualify for another stimulus payment this year.
The same applies if you had significant changes to your finances or household status.
The IRS issued stimulus checks based on the most recent tax information on file.
If you had a major change in income, you are eligible to receive a stimulus payment or more stimulus money than initially received.
Missing stimulus
If you did not receive a third stimulus payment, there may have been a problem that caused the missing check.
If you qualified for the third stimulus payment but did not receive it in 2021, you can claim it on your taxes this spring.
If you received any stimulus money, look for Letter 6475 from the IRS.
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