Last month the IRS began issuing Letter 6475 to those who received the third round of Economic Impact Payments. For those who received less hen the full amount, the Economic Impact letter will explain how to claim the payment through the Recovery Rebate Credit on tax year 2021 returns. If you did not receive the payment and are eligible, you can claim it in your 2021 tax return. (Should be filed by April 2022)
Letter 6475 will also include information that will help taxpayers quickly and accurately file their tax returns. While stimulus checks are not taxable income, they still need to be reported on 2021 taxes filed this spring.
Congress approved three stimulus checks since the beginning of the Covid-19 Pandemic. The first payment was a maximum amount of $1,200, which was paid in April 2020. The second payment was $600 in December 2020. The third stimulus check was a maximum of $1,400 for each dependent.
If you believe you are eligible, and have missed the third payment, you can check when and how the payment may have been sent through the IRS Get My Payment online tool. Additionally, you may access a copy of your tax transcript online.
My CFO Portal is available to discuss how the Economic Impact Payments may affect your 2021 tax returns.
To schedule a consultation, email: raza.rashid@onshoreadvisors.com Or call 317-853-6072.