January 18, 2022

letter declares recovery discount credit

(WJW) — Those who have a . received third stimulus check in 2021 should soon receive a letter in the mail from the Internal Revenue Service (IRS).

“People who receive these letters should keep them,” the IRS said in a… rack. “Don’t throw them away.”

The letters are intended to help you with your 2021 tax returns by explaining in more detail how to claim your economic impact (incentive) payments – which are not taxed but should be claimed anyway.

Are you entitled to a credit for recovery discount and do you have to request one? The explanatory letter will walk you through the process and tell you how much incentive money you received, including any “plus payments” and any additional dollars you still owe.

Valued up to $1,400 for recipients and any dependents, the third stimulus checks were sent out last March.

The letters should be sent by the end of January. There will also be a separate letter sent to those families who received child tax credits last year.

Learn more about filing your tax return, due on April 18, here.

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