In late January 2022, the IRS will be issuing Letter 6475 to those who received the third round of Economic Impact Payments. For those who received less than the full amount, the Economic Impact Payment letter will explain how to claim the payment through the Recovery Rebate Credit on tax year 2021 returns. Those who did not receive the payment and are eligible can claim the credit in their 2021 tax returns to be filed in April 2022.
Letter 6475 will also include information that will help taxpayers quickly and accurately file their tax returns. While stimulus checks are not taxable income, they still need to be reported on 2021 taxes filed this spring.
Congress approved three stimulus checks since the beginning of the Coronavirus pandemic. The first payment was a maximum amount of $1,200 paid out in April 2020. The second payment was $600 in December 2020. The third stimulus check was a maximum of $1,400 in March 2021 as part of the American Rescue Plan, plus additional amounts of $1,400 for each dependent.
If you believe you are eligible and missing the third payment, you can check when and how the payment may have been sent through the IRS Get My Payment online tool. Additionally, you may access a copy of your tax transcript online.
We are available to discuss how the Economic Impact Payments may impact your tax returns. To schedule a consultation, please click on the button below and request a time that works best for you.