IRS Sending Out Stimulus Check Envelopes: Everything You Need to Know

by Maria Hartfield
irs-sending-out-stimulus-check-envelopes-everything-you-need-know

The Internal Revenue Service is warning Americans to look out for a message they’ll be receiving later this month. Apparently, millions of taxpayers will automatically receive the stimulus check envelope in the coming days.

According to reports, the important communication will come in the form of a letter marked “important tax document” or “third economic payment.”

The letter referred to as 6475 is to notify those who received a third stimulus check last year. The distribution will also help people who have not yet received money still owed to them.

IRS Warns taxpayers Not to ‘Throw Them Away’

The IRS warns citizens not to throw the notification away. They posted the following statement urging people to look out for them.

“Using the information in these letters when preparing a tax return can reduce errors and delays in processing. People receiving these letters should keep them. Do not throw them away.”

“These letters can help taxpayers, or their tax professional prepare their 2021 federal tax return.”

Stimulus checks aren’t taxed. However, they must still be claimed.

The third installment of Economic Impact Payments (EIP) we distributed between March and December 2021. This equates to more than $160 million in checks worth up to $1,400 each for adults with another $1,400 added for dependents.

“Letter 6475 only applies to the third round of Economic Impact Payments issued starting in March 2021 and continued through December 2021,” said the IRS.

“The third round of Economic Impact Payments, including the ‘plus-up’ payments, were advance payments of the 2021 Recovery Rebate Credit [to be] claimed on a 2021 tax return.”

Keep the Stimulus Check Letter to Use in Tax Returns

The government-issued letter will also identify people entitled to the Recovery Rebate Credit on their 2021 tax return. The Recovery Rebate Credit refers to what you received on your third stimulus check as opposed to how much you were actually eligible for.

The distribution of stimulus checks began in March of last year. Checks were worth up to $1,400 per qualifying taxpayer plus each of their dependents.

Some may receive additional funding if they never received their stimulus check, or if other circumstances have changed such as having another baby or taking on an additional dependent.

Families will also receive Letter 6419 in regards to the 2021 child tax credit (CTC) payments.

Letter Number Two

The CTC payments outline the number of qualifying dependents your monthly deposits were based on.

“Families who received advance payments need to… compare the advance payments they received in 2021 with the amount of the child tax credit they can properly claim on their 2021 tax return,” the agency said.

This information is available online via the CTC update portal as well as IRS.gov.

Families still waiting to receive their payments, or perhaps didn’t receive the full amount they were eligible for, can claim the funds on their returns this year.

“You should always save tax return-related documents,” said Mark Steber, chief tax information officer at Jackson Hewitt. “In case anything comes along in the next two or three years.”

Outsider.com