If you haven’t yet filed your tax return this year, you could be eligible for the latest round of stimulus checks. The IRS is sending letters to around 9 million American households. If you qualify, you could receive up to $1,400 or possibly $2,800 for married couples.
If you file a 2021 tax return, you could claim the third round of stimulus checks provided by the $1.9 trillion American Rescue Plan. The plan includes assistance with rent payments, tax rebates, funds for vaccine distribution, and general aid for Americans struggling due to the COVID-19 pandemic. The stimulus checks first started going out during the early days of the pandemic lockdown, when many businesses and companies closed or switched to remote work.
Households and individuals can claim this third round of stimulus checks even if they didn’t have any income in the past year. Though, the New York Post notes, there are income caps for those claiming the checks.
Who is Eligible for the Latest Stimulus Check?
Here’s the rundown on who is and isn’t eligible for the check. If your adjusted gross income is at or below $75,000, you are eligible for $1,400. Married couples with a joint income of less than $150,000 were eligible for up to $2,800. Those with an income of at least $112,500 and filing as head of household were not eligible.
Additionally, taxpayers with dependents could possibly receive a $1,400 stimulus check for each dependent. This includes older dependents, students in college, parents supported by their children, and disabled adult children. In addition to the stimulus for dependents, there is also the Child Tax Credit and Earned-Income Tax Credit.
“For 2021, for the first time, families can get the child tax credit, even if they owe no tax and even if they don’t have a job or business,” said IRS spokesman Eric Smith to The Washington Post. “This mailing was designed to reach people who didn’t file and mostly have modest incomes.”
For this opportunity, the IRS is making its Free File program available until Nov. 17. Households and individuals have until then to file their 2021 tax return if they haven’t already.
Additionally, the IRS announced on Tuesday that it will adjust the tax brackets to reflect inflation next year. Because consumer prices are going through the roof, Americans may owe less in taxes with the new brackets. That’s the hope, anyway. The tax brackets will increase by around 7% to offset rising inflation levels.
The idea of these adjustments is that those with wages and salaries that have not kept up with inflation could end up in a lower tax bracket. As a result, they would not have to pay as much in taxes. Hopefully, this adjustment will truly benefit Americans in those situations.