IRS Reveals Millions Missed Out On Federal Tax Credits And Stimulus Checks: Letters To Reach Homes Soon

recession Stimulus Check
Stimulus Check

Millions of households should expect mail from the tax authorities that should not be a cause for alarm. It is because the agency wants to reach out to individuals and families who have missed out on any or all of the multiple federal tax credits and stimulus checks sent over the last two years.

Over 9 million residents are expected to get a letter from the IRS detailing the tax benefits for 2021 that they are eligible for but failed to claim on federal tax returns. It could be any of the three economic impact payments, the expanded Child Tax Credit stimulus check or the EITC (Earned Income Tax Credit), or all of them together.

Many families who do not need to file income tax returns as they are exempted due to their low earnings have stayed out of the radar of the IRS as they had no record in their database. 

Even Habitual Non-Filers Can Claim The Federal Stimulus Checks By Filing A Simple Return

Chuck Rettig, the Commissioner of the IRS said that even if such families are not mandated to file tax returns, they still are eligible for many important credits and are entitled to a stimulus check for such funds.

He said that they do not want households to overlook such tax credits. The letter will be a reminder to such households of the possible eligibility and the steps they need to take to claim the pending amount.

The missing benefits mainly stem from the third stimulus checks under ARPA, which also increased the amount of the Child Tax Credit up to $3,600.

Potential beneficiaries can immediately claim their credits by filing an income tax return. The IRS Free File form to allow easy filing will remain open through November 17, 2022. Individuals filers with income less than $12,500 and joint filers with double that income can file a return and claim the stimulus checks and the child tax credit that they missed out on.