IRS Letter Says You Are Eligible For A Federal Stimulus Check. What To Do

If you recently received a letter from the IRS, make sure you don’t throw it away or ignore it. You could be one of the nine million people that the IRS says could still be eligible for a federal stimulus check or extended child tax credit, or both.

However, if you received any such letter, you need to hurry and apply as you only have a few more days left to claim the stimulus money.

Who Is Getting The IRS Letter?

In October, the IRS said that it has started mailing letters out to people who haven’t yet claimed their federal benefits, including stimulus checks, the EITC (Earned Income Tax Credit) and the expanded Child Tax Credit.

Those who get the IRS letter and are eligible for federal stimulus checks or any other benefit, have until November 17 to claim the money, according to the IRS.

At the time of the COVID-19 outbreak, the IRS used the tax returns not only to determine eligibility for federal benefits but also to get the addresses of where to send the money. The tax returns usually carry the bank account information or home address for mailing federal money.

However, the agency recently found that about nine million people haven’t yet claimed their stimulus funds because they didn’t file a 2021 tax return. Thus, the IRS is sending letters to these people to let them know that they could be eligible for the stimulus money, as well as how they can claim it.

Are You Eligible For A Federal Stimulus Check? What You Need To Do

These nine million people have been identified by the Treasury’s Office of Tax Analysis as those who normally don’t need to file taxes because of having a low income.

Single taxpayers under 65 years of age aren’t required to file taxes if their annual income is less than $12,550, while for single filers over 65 years, the income limit is up to $14,250.

So, if you get a letter from the IRS and you believe you are eligible for federal stimulus checks or other benefits, then you need to file your tax return to claim the federal benefits. Even if you don’t get a letter from the IRS, but you believe you could be eligible, then you also need to file a tax return.

“The IRS reminds people that there’s no penalty for a refund claimed on a tax return filed after the regular April 2022 tax deadline,” the agency says.

People can file their return for free using Free File before Nov. 17, 2022. This tool, however, is available only to people with an annual income less than $73,000. Also, people can use the GetCTC tool to file a simplified 2021 tax return before Nov. 15, 2022.

The IRS recommends people file their tax returns electronically and select direct deposit to get their payment sooner.

This article originally appeared on ValueWalk

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Source: Read Full Article