IRS urges taxpayers to take action to reclaim unpaid stimulus funds
Don’t leave stimulus money on the table.
- The tax deadline for the 2021 tax year has passed
- The IRS issued a press release reminding people they can still file a claim if they are owed a refund
- The IRS is specifically urging taxpayers to file an application to claim the expanded child tax credit, which has been made available as part of the COVID-19 relief bills.
The American Rescue Plan Act was signed into law more than a year ago to provide recovery funds for individuals and families struggling with the lingering consequences of the coronavirus. But not everyone has received the payments under this COVID-19 relief legislation.
For those who have not received all the money owed to them deposited in their bank accounts, the IRS is calling for prompt action. It is important to heed the advice of the Internal Revenue Service so that you can recover the money owed to you, as you could potentially be entitled to thousands of dollars.
IRS wants to make sure taxpayers get their stimulus money
The IRS issued a press release on April 19, 2022 addressing the issue of unpaid stimulus funds. Specifically, the agency wanted to urge taxpayers to make sure they claim the expanded child tax credit.
This expanded child tax credit was one of many forms of recovery assistance allowed under the American Rescue Plan Act. It increased the existing child tax credit from $2,000 to $3,600 for children under age 6 and $3,000 for older children. While $1,400 of the credit was refundable under the old rules, the American Rescue Plan Act made the entire credit refundable. And it provided that half of the amount of the credit had to be paid during the months of July to December. These rules only applied for the 2021 tax year.
However, not everyone got their money. and even parents who received these monthly payments last year are still entitled to half of the remaining funds from the expanded credit. The IRS press release reminded parents to claim this money and told taxpayers it was not too late to get their funds.
The tax deadline has passed but you can still claim your credit
Claiming unpaid stimulus funds will require filing a 2021 tax return. The deadline to do so has passed, but as the IRS made clear in its recent press release, it’s not too late. to submit your returns and claim your money anyway.
“Families who do not owe taxes to the IRS can still file their 2021 tax returns and claim the Child Tax Credit for the 2021 tax year anytime through April 15, 2025, without no penalty,” the IRS statement read.
Although you have years left, you don’t want to wait to get your hands on those funds. So if you haven’t filed your returns for 2021 yet, be sure to do so as soon as possible. There are free online filing tools you can use to submit your tax forms, so check them out on the IRS website and find one that’s right for you.
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