Affected by Inflation? The IRS is Pending $1,400 for You
The IRS has begun mailing letters to about 9 million households that may have lost out on multiple pandemic-related tax refunds and stimulus checks, including the third batch of stimulus payments of $1,400 to individuals, $2,800 to couples, and an additional $1,400 for each dependant.
The IRS is contacting taxpayers who aren’t required to submit an annual federal income tax return, mainly because they don’t earn enough to be taxed – a category that includes a large number of retirees.
Are you eligible for this money? Continue reading to discover.
Consider matching for free with a financial expert to determine what to do with the money you may be entitled to if you need extra assistance dealing with the issues of inflation and the economic repercussions of the COVID-19 pandemic.
How to Recover Missing IRS Funds
The average U.S. taxpayer must file taxes once they earn $12,550 for a single filer or $25,100 for a couple. If you’re over 65, the amount rises to $14,250, or $27,000 for a pair.
However, because Social Security payments and Roth IRA withdrawals are not taxable, a single person receiving the maximum Social Security benefit might have more than $54,000 in combined benefits and supplemental income without having to file an income tax return.
The combined amount for a couple is more than $108,000, yet they are not compelled to file.
According to the Census Bureau, 53.3 million of the 65 million U.S. citizens receiving Social Security are retirees, with one out of every four of those older persons relying on Social Security benefits for at least 90 percent of their income.
This equates to almost 13 million retirees who would not have had to file a 2021 tax return.
If you are among those affected, recovering your lost stimulus benefit is as simple as filing a 2021 tax return.
According to the IRS, the quickest and easiest way to get a refund is to file a return electronically and select direct deposit. Filers can use popular tax software, online services, or a tax counselor to complete their returns.
It should be emphasized that in the previous round of stimulus payments, persons with adjusted gross incomes of $75,000 or less received the full $1,400, which was cut for those earning more, with individuals earning $80,000 receiving no payment.
Individuals with earnings in between received lower compensation. For joint filers, the cap was $150,000 and was eventually reduced to $160,000.
Non-filers may have also missed out on the expanded Child Tax Credit, which can be worth up to $3,600 per child, or the Earned Income Tax Credit, which can be worth up to $1,502 for workers with no qualifying 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.
Individuals earning less than $12,500, or $25,000 for couples, can file a simplified tax return for the Child Tax Credit at childtaxcredit.gov/file.
Finally, non-filers may have missed out on the expanded Child and Dependent Care Credit beginning in 2021. This benefit is available to families who pay for daycare in order to obtain work.
The credit is worth up to $4,000 for a single qualifying individual and $8,000 for two or more qualifying individuals.
The IRS may owe you money for pandemic-related stimulus funding that you did not receive. Many people who did not receive the money to which they were entitled may not have had to file tax returns and may have missed out on childcare credits.