The third stimulus check was sent out to eligible American families starting back in March 2021 as part of the American Rescue Plan Act. And while the Internal Revenue Service has announced they’ve now sent out all qualified payments, they say some families may still be leaving money on the table.
The IRS said Wednesday that parents of a child born or added to their family in 2021 “may be eligible to receive up to $1,400 for the child by claiming the Recovery Rebate Credit.”
But are you entitled to a recovery rebate credit and should you apply for one? The IRS recently started sending out explanatory letters to those who did receive the third payment, which breaks down how much you’ve gotten and whether you could qualify for more. You can also find that information on their website.
However, for those who didn’t receive a payment this year, there’s still a way to see if you qualify. Questions to ask yourself:
- Is there a new child in the family?
- Did the family income change drastically? (find exact qualifying dollar amounts here)
If so, people should look into applying for the recovery rebate credit.
The IRS reports sending out 175 million third-round payments last year, which totaled more than $400 billion.
For those who received child tax credit payments last year as well, a separate letter is also being sent out to those families too.
The recovery rebate credit must be filed as part of your 2021 tax returns, and the IRS made clear they would not calculate the rebate for you. Find out more about filing those tax returns, which are due on April 18, right here.
