Stimulus Update: Don't Ignore This Important Letter From the IRS

If you don't pay attention to it, you could miss out on money you're owed.

Getting a letter from the IRS in the mail may not seem like good news. But, if you received communication in the mail from the Internal Revenue Service recently or you get a letter soon, it may be a positive sign. It could mean you are owed stimulus money.

If you receive correspondence about your stimulus funds, you need to take action quickly. You have only a limited amount of time to make sure the money ends up in your bank account in a timely manner. So be sure to open and read the letter carefully to find out whether you may be owed money and what to do to claim it.

Who is getting a letter from the IRS and what does it mean?

The IRS indicated in mid-October that it was starting to send out letters to people who might not have received the COVID-19 stimulus money that was authorized by coronavirus relief legislation. Specifically, the letters are going to around 9 million people who may be owed:

• Some or all of the $1,400 payments authorized by the American Rescue Plan Act and available to most adults and dependents
• Some or all of the expanded Child Tax Credit, which is worth as much as $3,600 for children under age 6 and $3,000 for children aged 6 to 17.
• Some or all of the expanded Earned Income Tax Credit which could be worth as much as $1,502 for childless workers or $6,728 for working families with multiple children

These payments could add up to thousands of dollars. Many people missed out on receiving them for various reasons, including not filing tax returns in 2021.

Why is it so important to respond quickly if you receive an IRS letter?

If you get an IRS letter suggesting you may be missing stimulus money, you definitely don't want to wait to open it. That's because you will need to let the IRS know you're owed the funds prior to a deadline that is approaching fast. You can claim your money by:

• Submitting a simplified 2021 tax return by Nov. 15, 2022 at the GetCTC website
• Using Free File prior to Nov. 17, 2022 to submit a 2021 tax return

You don't want to miss your chance to get your stimulus money, so read your IRS letter right away, check carefully to see if you got your stimulus funds, and take action if you didn't.