Tax return forms on the exterior of the Farley Postal Building in Manhattan, New York.
Spencer Platt / Getty Images
The Internal Revenue Service (IRS) urged low-income Americans who are not required to file taxes and do not receive benefits under government programs such as Social Security to submit their tax information before May 17 in order to process the payment for third stimulus check of $ 1,400 that corresponds to them.
“People who normally do not file a tax return and do not receive federal benefits may qualify for these economic impact payments. This includes the homeless, the rural poor, and others. For those eligible individuals who did not receive a first or second economic impact payment or received less than the total amount, they may be eligible for the 2020 Refund Recovery Credit, but will need to file a 2020 tax return. See the special section on IRS.gov: Claiming the 2020 Refund Recovery Credit if you are not required to file a tax return“Explained the IRS in a statement on its website this Friday.
The “American Rescue Plan” that was approved last month in the federal Congress grants the full payment of $ 1,400 plus the same amount for dependents (regardless of age) to those who earn $ 75,000 or less in adjusted gross income; $ 150,000 or less, in the case of marriages. In the case of female heads of household, the maximum amount to receive the full payment in the third round is $ 112,500. From these figures, the gradual reduction of the payment begins to zero.
“The IRS reminds taxpayers that income levels in this new round of economic impact payments have changed. This means that some people will not be eligible for the third payment, even if they received a first or second economic impact payment. or claimed a 2020 Refund Recovery Credit. Payments will begin to decline for individuals earning $ 75,000 or more in adjusted gross income ($ 150,000 for married filing jointly). Reduced payments end at $ 80,000 for individuals ($ 160,000 for married filing jointly); people with adjusted gross income above these levels are not eligible to receive a payment, ”the agency added.
Although the income eligibility rules were changed in the Senate version of the law, for low-income Americans, the provisions will not alter their chances of receiving full payment along with extra credit for each dependent older or younger. .
Many of the people who are not required to file taxes are applied the full amount since they generate very little or could not be generating income as in the case of the homeless.
Last year, the agency enabled the “Non-filers” tool on its website for non-filers to enter their personal information and the first $ 1,200 stimulus check could be processed.
However, for the second and third rounds, that option is no longer available, and Applicants must make the claim through a tax return in which they can also request the disbursement of previous payments owed through the so-called “Refund Recovery Credit”.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.