Almost a year ago, the American Rescue Plan Act was passed into law to provide stimulus funds to families and individuals dealing with the lingering effects of the coronavirus. However, not everybody has collected the funds made possible by the COVID-19 relief law, reports The Ascent.
The IRS is asking anyone who hasn’t received all of their money transferred into their bank accounts to take action right away. It’s essential to follow the Internal Revenue Service’s guidelines to receive the funds that you’re promised, as you could be eligible for thousands of dollars.
IRS Needs To Assure That Taxpayers Receive Their Stimulus Funds
On April 19, 2022, the IRS published a press statement dealing with the issue of outstanding stimulus monies. The IRS wanted to make sure that people took advantage of the increased Child Tax Credit.
The American Rescue Plan Act permitted numerous types of stimulus help, including the enhanced Child Tax Credit. The current Child Tax Credit was doubled from $2,000 to $3,600 for kids under the age of six, and from $3,000 to $4,000 for older kids. Under the former standards, only $1,400 of the benefit was refundable, but the American Rescue Plan Act made the whole thing credit refundable. It further stipulated that half of the credit would be given out between July and December. These provisions are only applicable to the tax year 2021.
However, not everybody received their payment. Even families who collected those monthly payouts in 2021 are still eligible for half of the enhanced credit’s leftover funds. The IRS issued a press statement reminding parents to claim their monies and assuring taxpayers that it is not too late.
The IRS States That Refunds Can Be Claimed Even If Tax Deadline Has Gone
To claim overdue stimulus funds, you’ll need to file a tax return in 2021.
Although the deadline has gone, the IRS has stated in the latest news release that it is not too late to file your taxes and claim your money.
According to IRS, households that do not owe the IRS taxes may submit their 2021 tax return and receive the Child Tax Credit for the 2021 tax year until April 15, 2025, without incurring any penalties.
You would not want to wait several years to have these funds, even though you have plenty of time. So, if you haven’t yet submitted your 2021 tax returns, do so as soon as possible. There are many free online tools available on the IRS website that you may use to file your tax forms, so explore them and choose one that fits best for you.