The IRS has notified over 9 million people who may be eligible for part or the full economic impact payment and also the Child Tax Credit stimulus checks. The move is about people who normally do not need to file income tax returns due to their low earnings. The minimum amount needed to file income tax returns for those under 65 is $2,550 in 2021.
People earning below that threshold generally do not need to file a federal tax return. Though 160 million people have received their stimulus checks, a small percentage slipped under the radar of the tax authorities, though the number still comes close to 10 million.
The tax authorities relied on the income tax records of filers to send out stimulus checks. Regular filers with updated addresses and bank account information did not have to take further additional steps.
And millions of Americans do not have to file taxes, including low-income households and senior citizens. Naturally, the delivery of stimulus checks to such groups was incomplete and the coverage was very low.
Charles Rettig, the IRS Commissioner stated that steps are being taken to help people who are ignorant that they could be eligible for this payment or are incapable of taking the steps needed to claim such payments.
Rettig said that people who are normally not required to file their income tax returns can easily register on IRS.gov and still claim their stimulus check within weeks. but the November cut-off date is final as of now and now new requests will be allowed after that.
Registering On The Irs Site Will Help The Authorities Get Details Of Filer And Help Them Send The Stimulus Checks
It IRS started mailing the letters to avail of the final chance to claim the stimulus check on September 24. The letter informs people that they could be eligible for the stimulus checks if they meet the required criteria. They must be citizens or resident aliens and must have a Social Security number. The IRS has mentioned that around 7 million people have already registered through the non-filer tool to receive stimulus checks.
Registration on the IRS site will enable the tax authorities to obtain a valid bank account or at least a postal address. The authorities can thus send a stimulus check to the postal address or if they get bank account details, they can even directly transfer the amount to the account of the beneficiary.
But failure to register by the earlier cutoff date of October 15 will result in the filer having to file a federal income tax return to claim a stimulus check. in such cases, that could mean waiting to file returns for 2020.
The IRS has cautioned that merely receiving a letter about applying is not a guarantee of receiving payment. Immigrants who do not have a Green Card and the incarcerated are excluded from stimulus checks.
Also, high-income people are excluded from receiving the stimulus checks with individuals earning above $99,000 and a married couple earning over $198,000 are not eligible for any form of stimulus checks.
The minimum income to file taxes for individuals under 65 years is $12,550 and for those older than 65, it is $14,250. For married couples filing jointly, it is $25,100 if both spouses are under the age of 65. If one of them is above 65, it is $26,450, and if both spouses are 65 years or older the minimum income for filing taxes is $27,800.
So even if your income may be below the minimum income for filing income tax, there may be times when you would have to file a return for other reasons even if you do not have to file returns.
And to get the Earned Income Tax Credit, a refundable benefit for low-income workers who do not owe taxes, they will need to file income tax returns. The potential payments also include the Economic Impact Payments and the expanded Child Tax Credit stimulus check. put together they amount to thousands of dollars.
With thousands of dollars sitting around for millions of people, the IRS wants to ensure that they are still able to claim that stimulus checks. For the first time families will even get to claim the child tax credit stimulus check, something that was not possible earlier. Now even if people to d not owe any tax or hold down a business or a job.
These potential payments include the enhanced Child Tax Credit payments, a rebate for the 3rd round of stimulus checks, and the expanded earned income tax credit, which allowed millions to save close to $7,000.
Other Reasons That Could Be Putting Away People From Collecting Stimulus Checks
There is a misconception that collecting unemployment benefits is the last ditch and poor-choice resort. Some people are overrun by fears that collecting stimulus checks or other benefits could hurt them in the long run. They believe that employers look at a list of people who collected unemployment.
This holds back people despite the danger of not being able to pay for food, rent, and other vital expenses. These benefits are a vital resource for people who are temporarily without a steady source of income. In most cases, they do not have the financial backup and the emergency fund to see them through these difficult times.
Most low and moderate-income Americans live paycheck-to-paycheck. At such times they need immediate and direct financial help to stay afloat even as they look for a new source of employment. And the number is not low. There are currently around 10 million unemployed people in America.
Filing Does Not Guarantee A Stimulus Check
People should give their bank details and postal address along with their income tax return on the simplified tools of the IRS. People who do not have a bank account will receive their stimulus check through the US Postal Service.
Eligible individuals who missed the October 15 deadline to register will have to file a federal income tax return to claim their stimulus check. that could mean waiting to file the return and could further delay the process.