During the height of the pandemic, millions of Americans received stimulus cheques.
The Coronavirus Aid, Relief, and Economic Security Act (CARES) provides much-needed support to American businesses, as well as increases to unemployment insurance and direct relief cheques to a large number of American citizens. (Source: Midwest community)
Unclaimed Stimulus Cheques
Eligible individuals received a series of stimulus cheques amounting to $1,200 in April 2020, $600 in December 2020, and $1,400 in March 2021. As part of the rescue efforts, the government provided $930 billion in direct payments, but after checking tax returns, the Treasury Inspector General for Tax Administration, who monitors the IRS, determined that $4.7 billion of it went unclaimed. That implies that millions of Americans still owe money to the government.
The majority of unclaimed monies are from residents who did not receive the complete third payment or just received a portion of it. There are also persons who did not qualify for the stimulus cheque but now do, such as those whose income fell in 2021 or who had a kid that year. Fortunately, anyone who is still owed money under the stimulus cheque has some time to claim it. The IRS has started sending letters to the 2.9 million persons affected in order to correct the mistake, and the letters will continue to be distributed on a regular basis.
Those who qualify for the stimulus cheque will receive up to $1,400 (or $2,800 for married couples), plus another $1,400 for each qualifying dependent. They only need to file a 2021 tax return and receive the Recovery Rebate Credit. They have until the end of the fiscal year 2024, in the spring of 2025, to do so. They can also use Form 1040-X to modify a previously filed return. If you are unsure whether you are affected or want to learn more about the Recovery Rebate Credit, visit the IRS website.
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