Illustrative image of stimulus checks sent by the federal government.
Photo: Jeff Fusco / Getty Images
Although the deadline to file taxes without delay has passed, the Internal Revenue Service (IRS) has called on certain groups of Americans such as the homeless to submit their information even when they are not generating income so that it can be processed the third round stimulus check that corresponds to them.
“Even if payments are automatic for most people, the IRS continues to urge individuals who normally do not file a tax return and have not received Economic Impact Payments to file a 2020 tax return to obtain all the benefits to which they are entitled under the law, including credits such as the 2020 Refund Recovery Credit, the Child Tax Credit and the Earned Income Tax Credit, ”the office urged in a press entry on Wednesday.
The action will not only make it easier for the agency to process the $ 1,400 third stimulus check payment, but also other aid under the Biden Administration’s “American Bailout Plan” such as the extension to the “Child Tax Credit.”
“Filing a 2020 tax return will also help the IRS determine if someone is eligible for an upfront payment of the 2021 Child Tax Credit, which will begin to be disbursed this summer, “added the IRS through its website.
Low-income Americans should file taxes with the IRS as soon as possible
The potential low-income beneficiaries who are not required to file taxes with the IRS They have to do it this year to provide the agency with the information necessary to schedule payments for the third round. Last year, as part of the first round of payments of $ 1,200, The agency enabled the portal for non-filers or “Non-filers” so that this population could enter their data and the payment could be processed. However, that option was available until November 21. For checks due from the second and third rounds, individuals must claim the money as the “Refund Recovery Credit” through a tax return this year.
If they do not do that process promptly, they will have to wait until the 2022 tax season to apply on a form.
“People who normally do not file a tax return and do not receive federal benefits may qualify for these Economic Impact Payments. This includes the homeless, the rural poor, and others. Individuals who did not receive a Round 1 or Round Economic Impact Payment or who received less than the total amount may be eligible for the 2020 Refund Recovery Credit, but will need to file a 2020 tax return. See the special section on IRS.gov: Claim the refund recovery credit if you are not required to file a tax return ”, detailed the IRS.
Call to beneficiaries of federal programs for additional credits of $ 1,400 per dependent
The agency also warned about the possibility that some recipients of federal benefits must file a 2020 tax return, even if they generally do not, to provide the information that the IRS about dependents.
Under the third stimulus law, a $ 1,400 credit for each dependent in the household regardless of age. “Eligible individuals in this group must file a 2020 tax return as quickly as possible to be considered for an additional payment for their qualifying dependents,” the entity urged.
IRS focuses on sending payments for third stimulus check in two groups
In the third round distribution process, the IRS is currently focused on delivering payments to Americans who recently filed taxes with the IRS, as well as those who received an initial payment based on their 2019 tax return, and the agency then received the 2020 one (“plus-up” payments).
The IRS will continue to process checks to these two groups on a weekly basis until the schedule is complete.
Under the law passed last March in the United States Congress, the IRS and the Treasury Department have until December 31 to deliver all of the checks for the third round.