The Internal Revenue Service (IRS) announced that the third round of the Economic Impact Payments has been issued in full and reminded that any stimulus payment can be claimed through the 2021 tax return, as part of the recovery credit of 2021 refund.
Therefore, parents or guardians of a child born in 2021 who did not receive a third round of Economic Impact Payments for that child may be eligible to receive up to $1,400 for the child when claiming the Refund Recovery Credit.
While some 2021 Economic Impact Payment payments may still be on the way, the IRS is no longer issuing payments. As of December 31, the IRS issued more than $175 million of the third economic impact payment, representing a total of $400 billion.
The third round of Economic Impact Payments were advance payments of the 2021 Refund Recovery Credit. The federal agency began issuing Letter 6475, Third Economic Impact Payment, to recipients of the third round of Economic Impact Payments. .
This letter will help beneficiaries determine if they are eligible and should claim the Refund Recovery Credit on their 2021 tax returns when they file in 2022.
The amount of the Third Round Economic Impact Payment was based on the income and number of dependents listed on a person’s 2019 or 2020 tax return. The amount of the 2021 Refund Recovery Credit is based on the income and number of dependents listed on an individual’s 2021 tax return.
The IRS urges taxpayers to have all the information they need to file the correct return to avoid processing delays. If the return contains errors or is incomplete, it may require additional review while the IRS corrects the error, which will delay your tax refund.
To claim the 2021 Refund Recovery Credit, individuals need to know the full amount of the third Economic Impact Payment, including any Plus-Up payments they received. Individuals can view the total amount of their third Economic Impact Payment through their individual online account .