In a bid to assist taxpayers who missed previous stimulus payments, the Internal Revenue Service (IRS) has announced plans to issue $1,400 payments. This initiative targets around one million individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns. Here’s everything you need to know about eligibility, payment details, and what to expect.
Stimulus Payments Overview
| Payment Round | Amount Per Individual | Income Threshold (Single) | Income Threshold (Joint) | Eligibility |
|---|---|---|---|---|
| First Stimulus Payment | $1,200 | $75,000 or less | $150,000 or less | U.S. citizens and qualifying residents |
| Second Stimulus Payment | $600 | $75,000 or less | $150,000 or less | Same as first |
| Third Stimulus Payment | $1,400 | $75,000 or less | $150,000 or less | Non-recipients eligible via tax credit |
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was established to help individuals who didn’t receive the full amount of their Economic Impact Payments (commonly referred to as stimulus checks) during the COVID-19 pandemic. This credit allowed taxpayers to claim the remainder of their payment on their 2020 or 2021 tax returns.
Despite this provision, the IRS identified that many eligible individuals either left the Recovery Rebate Credit field blank or incorrectly entered $0 on their 2021 tax returns, resulting in unclaimed payments.
Eligibility for the $1,400 Stimulus Payment
To be eligible for the upcoming $1,400 payments, taxpayers must meet the following requirements:
- Non-Receipt of Full Third Stimulus Payment
Individuals who did not receive the complete amount during the third round of stimulus payments qualify for this rebate. - 2021 Tax Filing
The taxpayer must have filed a 2021 federal tax return. If this return omitted the Recovery Rebate Credit or was filed incorrectly, the taxpayer might still be eligible for the payment. - Income Requirements
- Single filers: Adjusted Gross Income (AGI) of $75,000 or less.
- Married filing jointly: AGI of $150,000 or less.
- Head of household: AGI of $112,500 or less.
How to Check Your Eligibility
Eligible taxpayers can verify their status by:
- Reviewing their 2021 federal tax returns to confirm if the Recovery Rebate Credit was claimed.
- Checking IRS records through the online portal.
- Contacting the IRS if unsure about payment eligibility.
When Will Payments Be Sent?
The IRS plans to begin disbursing these $1,400 payments in early 2024. Taxpayers who qualify should keep an eye on official IRS announcements regarding specific dates. Payments will be issued via direct deposit or mailed checks, depending on the individual’s preference on file.
What to Do If You Missed the Payment?
If you believe you qualify for the payment but have not received it, follow these steps:
- Contact the IRS: Use the IRS helpline or visit your local office for assistance.
- Amend Your Tax Return: File an amended return for 2021 to claim the Recovery Rebate Credit.
- Monitor IRS Updates: Stay informed about any additional announcements or eligibility changes.
FAQs About the $1,400 Stimulus Payment
1. Who is issuing the payments?
The payments will be issued by the Internal Revenue Service (IRS).
2. Can I claim the payment if I missed previous stimulus checks?
Yes, the Recovery Rebate Credit allows you to claim missed payments.
3. How will I receive my payment?
Payments will be sent via direct deposit or mailed as a paper check, based on your preference.
4. Is there a deadline to claim the payment?
You may need to file an amended tax return to claim the payment, and deadlines for amendments depend on IRS regulations.
5. Will there be additional stimulus payments in the future?
There is no confirmation about additional payments beyond this initiative. Stay updated through IRS announcements.