Do you want to get some extra cash in 2023?
If you missed out on the third stimulus check of $1,400 or got less than you deserved, you may still have a chance to claim it on your 2021 tax return.
However, you can get it. Read on to learn how:
The third stimulus check was part of the American Rescue Plan Act that Congress passed in 2020 to help Americans cope with the pandemic. It was available to
- Individuals who made less than $75,000,
- Couples who made less than $150,000 and their dependents
- The IRS sent out all the payments by Dec. 31, 2021, but some people still need to receive them or get the wrong amount.
According to a Treasury Department report in September 2022, more than 600,000 people had yet to receive their third stimulus payment1. If you are one of them, you can claim a Recovery Rebate Credit on your 2021 tax return.
However, this credit reduces your tax bill or increases your refund by the amount of stimulus money you are owed.
How to Claim the Tax Credit?
There are two possible ways you can claim your tax credit in 2023:
To claim this tax credit, you must know how much stimulus money you received or should have received in 2020 and 2021.
But where will you find this information?
You can find this information by logging into your Online Account on the IRS website or by checking the Letter 6475 that the IRS sent you.
In addition, you will also need to file a 2020 tax return if you haven’t done so yet.
You can also claim the credit if your income or dependents change from 2020 to 2021 and you become eligible for more stimulus money.
For example, if you had a child in 2021, added a dependent to your household, or earned less income than in 2020, you may qualify for an additional $1,400 or a partial payment.
To claim the credit, you must fill out Line 30 of Form 1040 or Form 1040-SR when you file your 2021 tax return.
For this, you can use the IRS worksheet or tax software to calculate the amount of credit you are entitled to. You can also get help from a tax professional or a free tax preparation site.
How Will you receive it?
You will receive it as part of your tax refund or as a reduction of your tax liability if you are eligible for the credit. The IRS will process your claim and send you the money by direct deposit or check, depending on how you filed your tax return.
If you also missed the first and second stimulus checks of $1,200 and $600, respectively, you can claim them as well by:
Filing a 2020 tax return
Claiming a Recovery Rebate Credit for that year.
But unfortunately, there is no indication that there will be another federal stimulus payment in 2023, but some states have provided relief payments to their residents.
You can check if your state is one of them by visiting this IRS page 3.
So Don’t miss this opportunity to get some extra cash in 2023. Claim your $1,400 stimulus check today by following these simple steps.