IRS Announces $1400 Direct Payment: There’s still time to claim your stimulus check if you’re an eligible non-filer until April, according to the Internal Revenue Service (IRS). Last Monday, March 4th, the IRS reminded everyone who might qualify for the 2020 Recovery Rebate Credit that there was still time to file a tax return and get paid.
The recovery rebate credit is still available for taxpayers who didn’t receive one or more of the Economic Impact Payments (EIPs), also known as a stimulus check, but most people who qualify for Coronavirus tax relief have already claimed or received their payments.
Americans were able to claim three sets of forward payments for EIPs on their individual income tax returns, or Form 1040, in 2020 and the first half of 2021.
The COVID told people they had until April 15, 2025, to fill out their tax returns if they wanted the recovery rebate credit for 2021.
Taxpayers have three years after the filing deadline to claim a refund and get any money owed to them. Those who haven’t filed a 2020 tax refund should review their records because they may be eligible for a refund through May 17, 2024.
A stimulus check of $1,400 was issued by the IRS
Even though the first payments were made between 2020 and 2021, the IRS expects nine million taxpayers to verify their eligibility for this stimulus check as soon as possible. There’s only a short period left to claim your stimulus check if you didn’t get it last time. For 2020 and 2021, the Recovery Rebate Credit generally requires the following qualifications:
Taxpayers can’t be dependent on others, and During the applicable year, as a citizen or resident alien,
Their Social Security number should be issued before the tax filing deadline.
It’s still possible to claim the 2020 recovery rebate credit if you pass away in 2020 or later. If you have an IRS online account, you can check if you have an EIP.
Recovery rebate credits don’t count when calculating federal benefits, and claiming a credit doesn’t affect immigration, green card, or other programs.
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If you don’t pay your taxes, what happens?
According to the Internal Revenue Service (IRS), Americans will owe $668 billion in overdue taxes, penalties, and interest by 2021. You’ll be penalized up to 25% if you don’t submit your taxes, and a tenth if you don’t pay.
If you file but don’t pay, the IRS will send you a letter explaining what you owe. There are a bunch of penalties you could face, including interest and late payment penalties, failure to file, failure to pay, and failure to pay the anticipated tax.
Depending on the underpayment, the year, and the interest rate, the penalty for failure to file can be 0.5% of unpaid taxes per month or part of a month, up to 25%.
You won’t get penalized if you pay 90% or more of your tax or 100% of your previous year’s tax. If your check is unclear, you’ll get a 2% penalty if your payment exceeds $1,250, or 25 if it’s below that.
