Stimulus Update: IRS Releases New Guidance on Claiming Stimulus Payments
- Many taxpayers can claim stimulus money they were due in 2021.
- This can be done by filing a 2021 tax return.
- The IRS has updated their FAQs about claiming stimulus money.
Make sure you understand the updated advice on claiming stimulus money.
In 2021, the Biden administration signed the American Rescue Plan Act into law. Under this Act, Americans became entitled to $1,400 stimulus checks as well as to expanded Child Tax Credit payments if they had eligible children.
Both the stimulus checks and part of the Child Tax Credits were deposited directly into the bank accounts of most eligible Americans over the course of the year.
Not everyone received all of their stimulus money, though. But the good news is, it's not too late to rectify that. Unclaimed stimulus payments and tax credits can be collected by filing a 2021 tax return.
Those who are owed money will need to know what's involved in claiming it, though, and on April 13, 2022, the IRS announced it had released new guidance addressing key issues that could affect the process for obtaining remaining payments. Here's what you need to know about this new information from the IRS.
The IRS has updated FAQs about claiming stimulus money
According to an IRS news release issued on April 13: "Most eligible people already received their Economic Impact Payments and won't include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit page to determine their eligibility and whether they need to claim a Recovery Rebate Credit for tax year 2021."
It is this information on the Recovery Rebate Credit page that the IRS recently changed. Specifically, the IRS modified the answers to the 1st, 5th, 8th, and 9th questions in Topic F of its frequently asked questions page meant to help people with stimulus payment issues.
Topic F of this FAQ document is entitled "Receiving the Credit on a 2021 Tax Return." That means the updated information is directly relevant to those individuals who will be filing their taxes by the upcoming April deadline in order to get unpaid stimulus money. The questions that were modified address issues including:
- When and how unpaid stimulus money will be paid
- Whether it will take longer to process tax returns when stimulus money is claimed
- How to obtain a new stimulus payment if one was sent via check but was lost, stolen or destroyed
- Requesting a payment trace to track the status of unpaid stimulus money
With the tax deadline rapidly approaching and with many people planning to file taxes this year in order to claim their stimulus money -- even if they normally don't submit returns -- it will be important for tax filers to review these FAQs carefully.
By following IRS guidance, taxpayers can make sure they do everything possible to obtain their stimulus payments as quickly as possible and to ensure they get the full amount of money they are owed.
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