“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 more thoroughly how to claim your economic impact (incentive) payments, which aren’t taxed but should be claimed anyway.
But what if you miss an incentive benefit?
Are you entitled to a restore discount credit, 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 a child discount last year.
The passage of the CARES Act sent a first round of direct payments to US taxpayers in April 2020. Those checks were followed by another payment round in December 2020 and then a third round under the U.S. bailout plan in 2021. The IRS also began making monthly payments to families with children in July 2021 as an advance towards the increased child discount.
Learn more about filing your tax return, due on April 18, by visiting the website of the tax authorities.