You may have recently received a letter from IRS. Don’t just throw it in the trash, read it, because you might be entitled to some extra money.
In mid-October, the tax administration announced that it would be send letters to more than nine million people who may qualify for thousands of dollars in stimulus payments and tax credits.
These were people who were not required to file a tax return because they appeared to have very low incomes. However, many members of this group may be eligible to claim some or all of the 2021 Salvage Rebate Credit, Child Tax Credit, Earned Income Tax Credit, and other employment credits. tax according to their personal and family situation.
“The IRS would like to remind potentially eligible individuals, especially families, that they can benefit from these valuable tax credits,” said IRS Commissioner Chuck Rettig. “We encourage people who have not yet filed a 2021 tax return to consider these options. Even if they are not required to file a tax return, they may still qualify for several important credits. We do not We don’t want people to overlook these tax credits, and the letters will remind people of their potential eligibility and the steps they can take.”
If I receive a letter, what should I do?
Non-filers are encouraged to submit a tax return to qualify for the first stimulus payment, officially known as the economic impact payment. (The IRS relied on tax returns to determine which people were eligible for stimulus payments and where to send the payments, but millions of people did not receive those payments.
Taxpayers have until November 17 to take advantage of the Free file to claim their benefits. The free software is available on the IRS website until the deadline.
The IRS said people who think they might be eligible for these benefits but haven’t filed a 2021 tax return could do so on the Child tax credit website.
More details about these expanded tax benefits
The three credits include:
- An extension Child tax credit: Families can claim this credit, even if they received monthly advance payments in the last half of 2021. The total credit can reach $3,600 per child.
- A more generous Earned income tax credit: The law strengthened the EITC for childless workers. There are also changes that can help low- and middle-income families with children. The credit can reach $1,502 for eligible workers without children, $3,618 for those with one child, $5,980 for those with two children and $6,728 for those with at least three children.
- The Salvage rebate credit: Those who missed last year’s third round of Economic Impact Payments (EIP3) may be eligible to claim the RRC. Often called stimulus payments, this credit can also help eligible people whose EIP3 was less than the full amount, including those who welcomed a child in 2021. The maximum credit is $1,400 for each eligible adult, plus 1 $400 for each eligible child or adult. addicted.
In addition to these three credits, many filers can also receive two other benefits with a tax return filed for 2021:
- A raise Credit for child care and dependent care: Families who pay child care expenses to work or look for work can obtain a tax credit of up to $4,000 for one eligible person and $8,000 for two or more eligible people.
- A deduction for charitable donations: Most filers who receive the standard deduction can deduct eligible cash contributions they made in 2021. Married couples filing jointly can deduct up to $600 in cash donations and individuals can deduct up to to $300 in donations. Additionally, retailers who make large cash donations are often eligible to deduct the full amount in 2021.
For more information on any of the above information, see the IRS press release here.
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