Thousands of Americans may still be due to a third federal stimulus cheque, which was permitted under the American Rescue Act in 2021 and amounts to $1,400 per qualifying taxpayer. According to a new study from the Treasury Department’s Inspector General for Tax Administration, about 645,000 potentially eligible people had not received a third stimulus check by the middle of September 2021. Some of those people received checks after September, but the report doesn’t say how many have received payouts since then.
The total amount of outstanding stimulus payments is estimated to be $1.6 billion, according to the Treasury Department. To be sure, the IRS has dispersed the majority of the payments from the third batch of stimulus cheques, with over 175 million taxpayers receiving checks. However, some people may have slipped through the gaps, and the current tax season may present them with an opportunity to claim the unpaid bill.
The Internal Revenue Service said on March 30 that it will no longer be issuing first-, second-, or third-round stimulus checks. However, taxpayers who missed a check or did not receive the full amount due to them can claim the excess money as a Recovery Rebate Credit on their 2020 or 2021 federal tax returns, according to the IRS. Some families that welcomed a new kid in 2021, for example, may not have received the third stimulus payment. The IRS would not have known about children born or adopted in 2021 if it had relied on the previous year’s tax return to determine eligibility.
Additionally, some persons whose earnings fell in 2021 may be eligible for additional stimulus funds. Because the payments were phased out at specified income levels such as $160,000 for married couples: persons whose earnings fell below that level in 2021 may be eligible for more money.
Who Was Left Out?
Individuals with an ITIN Individual Taxpayer Identification Number — who did not get a payment for an eligible dependent make up the majority of those who did not receive the $1,400 check they were due, according to the Treasury. According to the research, almost 420,000 people in this category had not received their paychecks as of last October. Workers who do not have a Social Security number but are required to submit taxes often utilize ITINs. Parents with ITNs who have dependents with a valid Social Security number may be eligible for reimbursement under the American Rescue Plan.
Due to a mistake with unemployment payouts, more than 130,000 people may have lost out on the third stimulus check. The American Rescue Act exempted the first $10,200 in unemployment benefits from taxation in 2020, but some taxpayers may have already submitted their returns before the change. Treasury stated that “these individuals will need to claim the 2021 Recovery Rebate Credit on their Tax Year 2021 returns.”
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Thousands of additional taxpayers may have missed out on their third stimulus payment owing to an “unresolved situation” in their tax account or because they altered their filing status, according to the IRS. People can check how much they received — or if they received a check at all by going into their IRS Online Account, according to the IRS. “Individuals should double-check their bank accounts — especially in the early spring and summer of 2021 — to determine if they received a third-round payment in advance last year,” the government said on March 30.
If taxpayers did not get a third stimulus check but their IRS Online Account shows they received payment, they should “call the IRS as soon as possible to see if a payment trace is needed,” according to the IRS.