Filing Past Tax Returns for Unclaimed Refunds
Ensuring Access to Stimulus Funds
According to The US Sun, despite the passing of the April 18th tax deadline, Americans can still file previous tax returns to claim unpaid refunds including stimulus payments. Eligibility for the largest stimulus checks amounts is determined by income with individuals earning under $75,000 (or couples under $150,000) potentially qualifying. However, payments gradually decrease for higher incomes, ceasing entirely at $80,000 for singles and $160,000 for couples. While a significant portion of economic aid has been distributed since April 2020, a government report indicates that between 9 and 10 million individuals may still be owed stimulus checks underscoring the ongoing need for clear information and assistance in accessing these funds.
To ensure receipt of owed stimulus funds, individuals can take proactive steps such as checking bank statements for deposit records or accessing online tax records for information on Economic Impact Payments. Additionally, parents can utilize the IRS’ child tax credit portal to monitor payments. Filing a tax return for 2020 and/or 2021 is necessary to claim any past stimulus checks though seeking guidance from a tax professional is advisable for those unsure about eligibility or the process. Beyond stimulus payments, other financial assistance opportunities exist such as the chance to apply for monthly payments or access rebates in certain regions providing further avenues for support during challenging economic times.
READ ALSO: Governor Evers Boosts Child Care Aid, Vetoes Other Tax Credits In Wisconsin
Navigating Stimulus Payment Delays and Processing Challenges
The IRS initiated the tax season earlier this year in January, extending the filing deadline to April without penalty. While most tax returns are typically processed within 21 days or six to eight weeks for paper filings, delays may occur if additional review is required. As of September 30, the IRS reported 5.8 million unprocessed individual returns, encompassing those from the previous year and reflecting the 2021 tax year. To track pending payments, individuals can no longer use the Get My Payment application but can refer to IRS Notice 1444-C or create an online account to access their total economic impact payment amounts. If payment status isn’t available, individuals can claim the recovery rebate credit and must file a 2020 tax return even if not required, to calculate eligibility and the stimulus checks amount. The completion of the recovery rebate credit worksheet aids in determining eligibility for payment.
During the pandemic, the federal government disbursed a historic $931 billion in stimulus payments, yet some individuals missed out due to various reasons. The Treasury Inspector General for Tax Administration (TIGTA) reported delays in payments for up to 10 million people, citing difficulties faced by tax nonfilers, first-time filers, mixed immigrant status families, and individuals experiencing homelessness. Most citizens received their stimulus payments via check or direct deposit, while others received prepaid debit cards, some of which were mistaken for junk mail and discarded. Eligibility for stimulus payments required meeting income restrictions and providing specific information on tax returns, with options for low-income individuals to claim through tools like GetCTC. It’s advised not to use the tool if filing a 2022 return, as it could delay the processing of tax returns and refunds.