The US citizens received stimulus checks in 2021 as a part of the American Rescue Plan. The eligible citizens who did not receive the payments can claim the amount when filing their taxes in 2022. President Biden launched the American Rescue Plan worth $1.9 trillion in March 2021. The eligible individuals received $1,400.
The eligibility criteria for the beneficiaries were based on the annual income threshold. As.com reports that individual filers who earned less than $75,000 a year and married couples earning less than $150,000 a year received the stimulus checks. In addition to them, few individuals who made $80,000 annually also qualified for smaller checks—the joint taxpayers who earned less than $160,000 are also eligible for the stimulus payments. The reports suggest that over 170 million beneficiaries received stimulus payments.
The Internal Revenue Service issued 171 million stimulus checks worth more than $400 billion. The IRS did not update the individuals’ tax information and sent the checks based on the 2019 income tax returns. The individuals need to update their 2021 information to know their eligibility for the stimulus benefits.
IRS Will Decide The Eligibility Based On Updated Tax Information
The individuals who earned less in 2021 than in the previous years will now be eligible for payments. The taxpayers below the threshold income limit will automatically qualify for a third stimulus check when filing the tax returns. In addition to the low-income families, the individuals who had other dependence in 2021 will also enjoy additional stimulus benefits. There is no age limit for the dependents to claim the monetary benefits. The taxpayers who did file the tax returns in 2019 and 2020 will also receive the payments. The non-filers can use specific methods to claim the benefits.
Taxpayers Can Claim The Payments Through Recovery Rebate Credit
The eligible individuals can claim the stimulus payments through the Recovery Rebate Credit, enabling them to reduce their taxes for 2021. The tax season begins at the end of January every year. The IRS is yet to announce the opening dates for filing the0 2021 tax returns. The last date to file income tax returns is April 18, 2022. The citizens need to keep track of the dates released by the IRS.