As the nation continues to recover from the impacts of the COVID-19 pandemic, most of the federal aid has ended. However, a stimulus check of sorts is still in the works for some American families who haven’t claimed all of their federal tax credits for 2021.
Here’s what you need to know about a November stimulus check or tax credit.
In early October, the IRS began to send out letters to families who are potentially eligible for federal aid.
According to an IRS news release, there’s still time for many Americans to file their tax returns for 2021 and receive various tax credits. Keep reading to see if you qualify.
The IRS will send a November stimulus check to qualifying families.
If you’re wondering whether you qualify to receive any unclaimed stimulus checks or tax breaks, you should receive a letter from the IRS very soon if you do. The agency said it was sending letters to over 9 million individuals and families that it believes may qualify for a variety of federal benefits and tax credits.
To claim any benefits like the Earned Income Tax Credit (EITC) and others, you must file a 2021 tax return. Those slated to receive the IRS notification are people who haven't filed a federal tax return yet, which is the only way to receive the tax benefits available.
Even if you haven’t received a letter from the IRS, if you didn’t file 2021 tax returns and believe you may qualify for these benefits, you can still file a return. There isn't a penalty for late tax filing if you weren’t required to submit a return.
Who qualifies for stimulus checks and tax credits?
The three tax credits for which the IRS has sent notifications are the Child Tax Credit (CTC), Recovery Rebate Credit (RRC), and Earned Income Tax Credit (EITC).
“The IRS wants to remind potentially eligible people, especially families, that they may qualify for these valuable tax credits,” said IRS Commissioner Chuck Rettig.
The IRS sent letters to individuals and families that it believes may qualify for one or more of those three tax credits, but haven't filed a 2021 tax return yet.
Low income is often the reason for someone not being required to file a tax return, but those people are missing out on needed benefits.
However, there is a deadline for filing taxes and claiming your stimulus check.
The deadline to use Free File to submit a tax return is Nov. 17, 2022. The link to submit this information is IRS.gov/FreeFile. Assuming your income is $73,000 or less, you are able to use Free File, which gives access to tax software to help prepare your tax return.
The IRS noted that Free File will be open for an extra month this year in order to help people claim their benefits without charge. ChildTaxCredit.gov/file is also an option for filing a tax return, even for those without children.
If an individual income is below $12,500 or a couple has a combined income of less than $25,000, they may file a tax return to claim the Recovery Rebate Credit and the Child Tax Credit.
The Recovery Rebate Credit covers any missed 2021 stimulus payments.