Can I still get 2021 stimulus money when I file taxes? Maybe — and you’ll need to act fast
More than 18 million Californian tax filers got economic stimulus payments from Washington last year. More could still get them — but they should act quickly.
The $1,400 per qualifying adult or child not claimed last year, perhaps because a family member had a baby or their income plunged, can be retrieved on the 2021 federal tax return.
The filing deadline is Monday, though people can seek an automatic extension until Oct. 17.
The payment is the third installment of government stimulus “checks” aimed at reviving an economy clobbered by COVID-19 starting in March 2020. The first two payments were authorized in 2020.
The 2021 payment was $1,400 per adult and dependent child. The amounts are phased out once joint filers’ adjusted gross income reaches $150,000 and single filers reach $75,000. The payments are not available to joint filers who made more than $160,000 and single filers who made more than $80,000.
It’s important, according to the Internal Revenue Service, that people who want to claim the 2021 payment on their tax return take the initiative themselves to do so.
“The IRS will not automatically calculate the 2021 Recovery Rebate Credit,” the agency said in a statement.
Among the key reasons the IRS lists when it explains who may be able to claim stimulus payments on their tax return:
▪ Newborns. Parents of a child born in 2021 who claim the child as a dependent on their 2021 income tax return could be eligible to get $1,400 for the child.
▪ New qualifying dependents. If a new dependent, such as a parent, a nephew or niece, or a grandchild, was part of the family last year, and was not listed as such on the 2020 income tax return, the family could claim $1,400 for each of the qualifying dependents.
▪ Lower incomes. If someone’s income was above the limits for getting payments in 2020, but below those limits last year, they could claim a payment
Does the IRS owe you money?
Here are some common questions and answers about claiming the credit from the IRS:
Q. How do I know if I’m eligible for the credit?
A. The IRS advises looking at your IRS online account and check “Tax Records.” If you don’t have an account, you’ll be asked for a photo ID to access your data.
File electronically and tax preparation software will help you figure your Recovery Rebate Credit. The Recovery Rebate Credit Worksheet in the 2021 Form 1040 and Form 1040-SR instructions can also help determine if you are eligible for the credit.
In addition, you should have received in the mail from the IRS by now Letter 6475 explaining eligibility and the amount you can receive. Go to the Recovery Rebate Credit website to learn more.
Q. If someone died last year, are they eligible for the credit?
A. No. Anyone who died after January 1, 2021 is not eligible.
Q. I don’t normally file a tax return. Do I have to do that if I want the credit?
A. .If you are eligible, yes, you must file a return. For more information, take a look at this website: https://www.irs.gov/newsroom/2021-recovery-rebate-credit-topic-b-claiming-the-2021-recovery-rebate-credit-if-you-arent-required-to-file-a-tax-return
Q. Suppose I had no income last year?
A. If you have no income or income of $73,000 or less, you can file the return electronically for free through the IRS Free File Program. You have to do that to claim the credit.
Q. Did the government reduce my payment because I owed taxes or other federal debts? Or if I or my spouse were late on child support?
A. No.
Q. If I made a lot more money last year than in 2020, and technically did not qualify for the payment I did receive, do I need to return it?
A. No.
Q. What’s the best way to reach the IRS for help?
A. Check the website at IRS.gov, where there are extensive explanations and answers to frequently asked questions.
This story was originally published April 13, 2022 at 11:09 AM with the headline "Can I still get 2021 stimulus money when I file taxes? Maybe — and you’ll need to act fast."
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