A lot of the U.S citizens have already received payments; although, those who have not still get the money they are entitled to will be required to claim it through the 2021 Recovery Rebate Credit on their income tax return.
To utilize the Recovery Rebate Credit, you must mention the stimulus money that you got this year if any, and how much you were expected to be sent actually.
This is the last chance taxpayers will have to claim their stimulus cash except for when they file a revised 2021 tax return afterward.
It has to be noted that new parents and other beneficiaries who added dependents last year may still be eligible for the additional money.
Families may also be entitled to get money if their situation transformed last year as compared to 2020.
For instance, children born last year are eligible for an extra payment of up to $1,400, which parents did not get earlier this year.
Families who added a dependent, like a parent, niece, nephew, or grandchild, on their 2021 tax return and who were not added as a dependent on their 2020 tax return may also be eligible.
Although, taxpayers have to fall under the income threshold requirements to be eligible to get the money for themselves or their dependents.
If a single filer had an adjusted gross income (AGI) of $80,000 earlier last year, they did not meet the eligibility criteria to receive a stimulus check, though if their AGI for last year is below $75,000, then you would be entitled to receive the entire amount of $1,400.
Additionally, if last year your AGI was $80,000, putting up $5,000 to a traditional IRA, which you can still do for 2021, would reduce your taxable income enough to meet the $75,000 AGI threshold requirements for the total stimulus payment.
You would be required to do that before submitting your 2021 tax return to get the benefits.
When Can You File Your Taxes?
From January 24, taxpayers can start filing their tax returns officially, and a W-2 form is an important document you will require.
A W-2 form is given by your employer and contains details regarding taxes and your income.
Employees are usually provided with copies of these forms by January 31, through mail or electronically.
The last date to file taxes this year is April 18.