ATTENTION: Stimulus Check Deadline Is Almost HERE (Nov 17th!)
(RightWing.org) – The tax filing deadline is in April. Extensions typically give filers until mid-October. However, there is one more deadline to keep in mind. November 17, 2022.
Over 9 million Americans have not yet claimed tax credits that they may be eligible to claim under the American Rescue Plan enacted last year. The gap may arise because some of these people may not normally be required to file tax returns, and so missed their new tax credits.
These credits include the 2021 Economic Impact Payment, expansions of the child tax credit and the earned income tax credit.
Who Qualifies for the November 17 Extension?
Some low-income individuals and families are exempt from filing yearly tax returns. Most individual filers under age 65 who are earning below $12,550 a year, or married couples who earn below $25,000 per year, do not have to file taxes with the IRS. Individuals over age 65 whose sole income is Social Security payments are also eligible to skip filing taxes.
There are some exceptions, such as for individuals who are self-employed and need to report their income regardless.
In general, there are increased deduction thresholds, and some may find it worth the trip to an advisor regardless of their current income levels.
But because so many low-income Americans are not required to file tax returns, this means that the IRS has very limited information. This means that the IRS does not have access to a bank account in which to deposit stimulus checks of $1,400, nor did they have an address on file to notify the recipient of their money owed.
Those who have never filed a tax return, have filed for the first time, or have limited access to banking tools are the most likely to experience difficulties receiving their stimulus payments and credits. Those with certain immigrant status, those who have limited access to the internet, or are homeless are also likely to experience these difficulties.
What If You Didn’t File For An Extension?
Taxes were due in April. If someone was legally obligated to file their taxes in April and did not request a six-month extension, they are not eligible for the November 17 extension.
This particular initiative is a last-ditch effort by the IRS to contact underserved Americans before they lose out on what they are owed when their credits expire.
What Credits are Available?
The American Rescue Plan of 2021 gave a stimulus check of $1,400 to every eligible American. The IRS made these funds available as a tax credit for those who did not receive their payment via direct deposit or a cheque in the mail.
The American Rescue Plan also expanded the child tax credit for 2021. While the credit is usually around $2,000 per year, the legislation increased the limit to $3,000 per qualifying child between ages 6 and 17 and $3,600 per qualifying child under age 6. Many Americans were given direct deposits ranging between $250 and $300 per month, but families still had to file their taxes for any remaining balances.
The earned income tax credit is a major anti-poverty initiative, and thus tends to be valued quite high. Qualifying Americans need to have at least some income documented with a W-2. This means that those who are self-employed or taking cash only income won’t be able to file for the earned income tax credit, because that requires a different tax form.
How to File for Your Stimulus Check
Ready to file for your 2021 stimulus payment and possibly some of these other credits?
Start by visiting ChildTaxCredit.gov or the IRS Free File site. These websites feature a simplified form designed to help those who were not otherwise required to file a tax return claim credits that they would have been owed if they had filed a tax return normally.
The Nov. 17, 2022 extension does not apply to those who would have been required to file by April 15th, with an extension date of October 17th. This specific extension is primarily aimed at Americans who do not normally file taxes and thus were unable to collect the stimulus checks that went out last year.
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