The IRS Is Sending Letters to Millions of Individuals Regarding Certain Tax-Related Benefits They May Still Be Eligible to Claim
Over the past several years, there have been many tax laws passed to provide American taxpayers with some financial relief as they faced the challenges created by the COVID-19 pandemic. While many of these tax-related benefits were paid out automatically to eligible individuals, and their families, taxpayers may be eligible for additional benefits by filing their 2021 federal income tax return. The IRS has recently stated that they will be “sending out letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return.”
A few of the more significant COVID tax provisions that many American taxpayers were eligible for include the following:
• 2021 Recovery Rebate Credits (also known as Stimulus Payments): These payments were made to individuals and their families based on the number of dependents and the income level of the individual and/or family. If individuals and/or families did not receive all of the amounts they were owed in advance, they can claim the additional amounts owed to them by filing their 2021 tax return.
• Advanced Child Tax Credit: Many taxpayers with dependent children received an advanced payment of their 2021 child tax credit as a monthly payment from July 2021 – December 2021. In order to claim the remainder of this refundable credit, or additional amounts owed that were not received in advance, taxpayers must file their 2021 tax return.
• Earned Income Tax Credit (EITC): The recent law changes increased the number of taxpayers that are eligible to claim the EITC as well as increased the amount of credit available to eligible taxpayers. To receive this refundable credit, eligible taxpayers must file their 2021 tax return.
Click Here – to read the entire IRS release related to the letters they will be sending out
If you receive one of these letters from the IRS, and you have not already filed your 2021 tax return, we recommend reviewing the eligibility requirements related to these benefits to determine if you are eligible for additional benefits by filing your 2021 tax return.