It is close to three years since the first of the pandemic stimulus checks were paid out by the federal government. While the deadline to file the 2020 federal taxes was October 15, 2021, you can still file your income tax returns to claim the first and second stimulus checks.
The stimulus checks are a federal tax credit, known as the Recovery Rebate Credit (RRC). And to claim the RRC for a particular year, you will first need to file your federal income tax for that year. The details of late filing of federal income tax returns can be obtained from the IRS website under the Filing Past Due Tax Returns.
If you do not owe taxes for that particular year, you do not have to pay any penalty for filing so late. But if you owe taxes for that particular financial year, you may be subject to fines and penalties for not filing or not paying your taxes on time. The government may reduce your tax refund to pay any tax amount due and also other state or federal debts.
Getting The Third Stimulus Check
The third round of the Economic Impact Payment was part of the American Rescue Plan Act signed in March 2021 by incoming President Joe Biden. It sent forth a slew of direct and indirect stimulus checks that were bigger and more widespread than the earlier two rounds of Economic Impact Payments.
The deadline for filing the 2021 income tax returns to claim the third round of the stimulus check was November 15, 2022. Those who receive the third round of payment in 2021 should have in possession a letter from the IRS called “Notice 1444-c” that details the amount received so that you still get to file your income tax returns and receive the first two rounds of the stimulus checks.
If you did not receive the final round of the economic impact payments, you can claim it at the time of filing your income tax returns for 2021. And for the first and second rounds, you will need to amend or file your 2020 income tax returns and receive those payments.
Other additional resource links that help you collect your economic impact payments include taking the help of “GetYourRefund” to collect your 2020 stimulus check after filing your taxes, or going to the GetMyPayment website of the IRS and checking the status of your stimulus check before deciding on any further step. You can also call the 211 Economic Impact Payment Helpline with questions at +1 (844) 322-3639.
Millions Continue To Wait For The Federal Stimulus Checks
Counting the last of the federal stimulus check, the Economic Impact Payments under the American Rescue Plan Act, there are at least 10M Americans who are yet to get their stimulus check. This was the conclusion that the IRS arrived at after going through data from other sources.
The IRS database has one major drawback. It only includes the names of individuals and households that regularly file their income tax returns. But a substantial part of the American population includes households whose earnings are way below the figures necessary for the compulsory filing of income tax.
Thus, millions of such people have not received the first two rounds of the stimulus checks and may not also receive their third round of payments because the IRS does not have sufficient information, or at times any information, about them. Such information about the company may include their account number, their bankers, the correct address, and the latest account number.
While the Internal Revenue Service has taken the onus of distributing the stimulus checks to eligible recipients, there remain millions of Americans who are denied because of flimsy reasons that include missing information, lack of internet, and the wrong postal address, which prevents the authorities from sending the stimulus check through email.
Of the three major pieces of legislation enacted during the COVID-19 pandemic and after, the American Rescue Plan Act proved to be the most significant and provided the last round of the Economic Impact Payments. While the payments were distributed through the IRS to eligible recipients, millions remain who still await their first and second rounds of payments and may not receive even the third round because the IRS lacks the requisite details of the tax filers to send them the stimulus check. This includes their address, bank details, etc.
For those who haven’t received their stimulus checks for the initial two rounds, there is still an opportunity to claim the financial relief that you are entitled to. But the basic requisite for it is that you have to file your income tax return or file for an extension.
2023 Tax Refunds Going Out In Full Force
The tax refunds have been an annual lifeline for millions of Americans, so much so that seventy-five percent of adults who are in line for a tax refund this year say that it will have a big impact, and a positive one at that, on their financial situation.
But experts warn that taxpayers in America will be in for some disappointment this year. The IRS had earlier cautioned that there would be a significant diminishing of the individual value of the refunds. This they have attributed to the shrinking of pandemic-era deductions, rebates, and tax credits.
This change is expected to have a domino effect as most low and moderate-income families eagerly await these tax refunds and windfalls to pay off debts, cover daily expenses, and build up savings. And the tax refunds have become even more vital in a year when inflation has decimated the meager savings of most low and moderate-income families. It has severely dented the purchasing power of Americans. For the first time in decades, people are faced with negative growth in wages once adjusted for inflation, despite a rise in wages after the pandemic.
It is reasonable to expect that the tax refunds check in 2023 will be smaller than in a previous couple of years. With most pandemic-era tax breaks drying up, this was a natural outcome. The economic impact payments, the Earned Income Tax Credit, and the expanded Child Tax Credit stimulus checks are a matter of the past and are not going to be revived anytime soon.