Update on Stimulus Check: You’ll Need This Notice From the IRS to Get More Cash. Latest News

Update on Stimulus Check

The majority of Americans received their full Economic Impact Payment — or third stimulus payment — in 2021, but there’s a chance you’ll get extra. You can get an additional $1,400 if you had a baby or added a qualifying child to your household last year. You may owe more money in 2021 if your income has changed dramatically.

The third checks were mailed out in January, but those who are eligible for the extra money can claim the recovery rebate credit on their 2021 tax returns when they file this year.

The only catch is that you’ll require an IRS letter to do so. Beginning in late January, beneficiaries of the third stimulus check received Letter 6475, Your Third Economic Impact Payment. It’s the official documentation of your stimulus payments for the entire year of 2021.

The letter can help you figure out if you owe additional money through the recovery rebate credit. Even if you don’t qualify for further funds, the letter is required to declare stimulus funds on your tax return.

Here’s how to make sure you get all the stimulus funds available to you. Also, find out how parents may take advantage of the extended child tax credit and when you should file your taxes this year.

What Is the Purpose of IRS Letter 6475?

The IRS stated in a January release that “the Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return,” including personal information such as your name and address, as well as the total amount sent in your third stimulus payment.

Update on Stimulus Check: You’ll Need This Notice From the IRS to Get More Cash. Latest News

This might include “plus-up” payments, which are extra monies provided by the IRS to persons who were qualified for a higher amount based on their 2019 or 2020 tax returns, or information from the Social Security Administration, Department of Veterans’ Affairs, or Railroad Retirement Board.

You may have already gotten a Letter 1444-C, which details the amount you were paid and how it was delivered, but you won’t need it to file your 2021 tax return.

Is It Truly Necessary for Me to Save the Letter?

According to Mark Steber, chief tax information officer at Jackson Hewitt, you should always keep tax return-related documents: “In case something comes along in the following two or three years,” he says, W-2s, interest statements, and IRS letters are good records of your account.

“It’s always crucial, but especially so if you’re due extra money,” Steber told CNET. “Especially if you had a new kid, adopted a child, fostered a child, or it’s your year to split joint custody or any number of other life changes.” “An additional payment would be appropriate in all of these circumstances.”

What Am I Supposed to Do With Letter 6475?

Keep it until you or your tax preparer is ready to file your 2021 federal return, and then use the amount on your Recovery Rebate Worksheet to see if you qualify for a credit.

According to the H&R Block website, “having the erroneous amount on your return could trigger a manual review,” which could cause a refund to be delayed for weeks.

What Should I Do if I Am Unable to Locate My Letter?

If you don’t receive Letter 6475 (or misplace it), you can check your IRS account for details on your stimulus funds. If you don’t already have one, go to the IRS website and create an ID.me account to verify your information.

Here’s what to do with that IRS letter regarding your child tax credit payments, as well as how to file taxes on your phone.

What if I Didn’t Receive Letter 6475?

You will not receive Letter 6475 if you have never received a third stimulus check. To see the amount of your Economic Impact Payments, you’ll need to register an IRS online account. If you were entitled for payments but did not receive them, you can claim the recovery rebate tax credit on your 2021 tax return to recover those amounts.

Visit our website by clicking here to learn more about stimulus checks.