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IRS, national partners launch EITC Awareness Day on 50th anniversary of the Earned Income Tax Credit
EITC has helped America’s working families since 1975
IR-2025-20, Jan. 31, 2025
WASHINGTON — The Internal Revenue Service and partners around the nation today celebrated the 50th anniversary of the Earned Income Tax Credit (EITC) with the launch of this year’s EITC Awareness Day campaign.
The annual campaign, now in its 19th year, helps increase awareness among the millions of working Americans with a low-to-moderate income who are eligible for the EITC. The IRS estimates that roughly one in five eligible taxpayers miss out on claiming this valuable credit.
EITC was signed into law on March 29, 1975. Through numerous legislative changes, the tax break has helped encourage work and lift many financially challenged families out of poverty.
As of December 2024, approximately 23 million workers and families had received about $64 billion total from the EITC, according to IRS statistics. On average, eligible taxpayers received $2,743 from the credit in tax year 2023.
For the past 19 years, the IRS has invited community organizations, elected officials, state and local governments, schools, employers and other interested parties to join this national grassroots effort to help reach workers eligible for the credit. IRS offers an online social media toolkit with sample text and downloadable graphics to help spread the word about the EITC.
Who is eligible to claim the EITC?
Workers may use the EITC Assistant, an online tool, to check their eligibility, which may be affected by changes in marital, parental or financial status. Workers also may visit the Child-related tax benefits comparison page to learn more about basic eligibility rules for the EITC and several other tax credits.
EITC is for workers whose income did not exceed the following limits in 2024:
No. of dependents Single filer income limit Married, filing jointly income limit No children $18,591 $25,511 1 child $49,084 $56,004 2 children $55,768 $62,688 3+ children $59,899 $66,819 *Investment income limit: $11,600
Workers also must:
- Be a U.S. citizen or resident alien all year.
- File a tax return even if their income level doesn’t usually require them to file.
- Have a valid Social Security number (SSN) for themselves, as well as for their spouse, if filing a joint return, and for each qualifying dependent claimed for the EITC.
- File a return without Form 2555, Foreign Earned Income.
There are special rules for military personnel, clergy and ministers and taxpayers with certain types of disability income or a child who is disabled.
Eligible workers between the ages of 25 and 64 who have no dependents may receive up to $632 by claiming the EITC, while married but separated spouses who do not file a joint return may qualify for the EITC if they meet certain requirements.
Those with qualifying children can receive a maximum of $7,830 when claiming the EITC for tax year 2024, up from $7,430 in tax year 2023.
How to claim the EITC
To get the EITC, workers must file a tax return and claim the credit on that return. They can file in a variety of ways, including by using:
As a reminder, the quickest way for taxpayers to get their refund is by e-filing an accurate return and choosing to receive that refund via direct deposit.
New this year: Duplicate dependents
Starting this filing season, the IRS will accept an e-filed return even if a dependent has already been claimed on a separate, previously filed return as long as the primary taxpayer on the second return includes a valid identity protection personal identification number (IP PIN).
This change will reduce the time it takes for the agency to receive the tax return and accelerate the issuance of tax refunds for those with duplicate dependent returns. In previous years, the second tax return had to be filed by paper.
Meanwhile, taxpayers who do not have IP PINs will have their e-filed returns rejected if one of their dependents has already been claimed by another taxpayer.
Note that the use of an IP PIN does not exempt taxpayers from receiving notices questioning their right to claim certain dependents.
Claiming other valuable tax credits
Whether they qualify for the EITC, taxpayers may be eligible for other valuable tax credits, such as the Child Tax Credit (CTC), the Additional Child Tax Credit (ACTC) or the Credit for Other Dependents (ODC). The Interactive Tax Assistant is a helpful tool for taxpayers to check their eligibility for those credits.
When to expect EITC refunds
The Where’s My Refund? tool, which allows taxpayers to monitor the status of their refunds, will be updated with projected deposit dates for most early EITC/ACTC refund filers by Feb. 22. Most EITC or ACTC related refunds should be available in bank accounts or on debit cards by March 3 if there are no issues with a taxpayer’s return and they chose to receive their refund by direct deposit.
Additional resources
Today marks the 50th anniversary of the Earned Income Tax Credit (EITC), a vital program that helps millions of working Americans keep more of their hard-earned money. To celebrate this milestone, the IRS has teamed up with national partners to launch EITC Awareness Day.The EITC is a refundable tax credit for low to moderate-income working individuals and families. It is designed to provide financial assistance to those who need it most, lifting them out of poverty and helping them achieve financial stability.
EITC Awareness Day aims to raise awareness about the EITC and encourage eligible individuals to claim this valuable credit on their tax returns. By doing so, they can receive a significant refund that can make a real difference in their lives.
The IRS and its partners are working together to spread the word about the EITC through various outreach efforts, such as social media campaigns, informational events, and community partnerships. They are also providing resources and tools to help individuals determine if they qualify for the credit and how to claim it.
If you or someone you know may be eligible for the EITC, be sure to take advantage of this valuable program. Visit the IRS website or speak with a tax professional to learn more about how you can benefit from the EITC on its 50th anniversary.
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IRS, EITC Awareness Day, National Partners, 50th Anniversary, Earned Income Tax Credit, tax credits, tax season, financial assistance, low income families, tax refund, tax benefits
#IRS #national #partners #launch #EITC #Awareness #Day #50th #anniversary #Earned #Income #Tax #Credit$7,830 credit from the IRS: Requirements and eligibility for tax return move with big payoff
Tax season 2025 has officially begun.
And as people’s filings get underway, the Internal Revenue Service (IRS) is urging taxpayers to take a closer look at an oft-overlooked tax credit.
According to a press release published to the IRS website, the Earned Income Tax Credit (EITC) is one that seeks to help “American workers and families [get] a financial boost.”
The EITC is “one of the federal government’s largest refundable tax credits for low- to moderate-income families,’ the release explains. The IRS estimates that about 23 million eligible workers and families received about $57 billion in EITC nationwide when filing for 2023.
The current income threshold for individuals who are eligible for the ETIC is up to $59,899; for married couples who are filing jointly it’s $66,819. Investment income must also be $11,600 or less.
Taxpayers must also have a valid Social Security number, according to the IRS. You must also be a U.S. citizen or a resident alien all year, and can’t have filed a Form 255 for reporting foreign income.
The EITC credit ranges from $2 to $7,830, depending on a variety of factors. The amount of this credit might also change if you have children, dependents, are disabled or meet other criteria, the IRS explains.
Please also note that — should you claim this credit — your refund could be delayed, as the IRS required by law to wait until mid-February to issue payment to those who claim the EITC.
You can also — as luck would have it — claim tax credits for previous years, up to 2021, eligibility withstanding.
There’s even an EITC Assistant the IRS offers to see whether or not you qualify for the tax credit.
Are you one of the lucky individuals who received a $7,830 credit from the IRS? If so, you may be wondering what the requirements and eligibility are for this tax return move with a big payoff.First and foremost, in order to qualify for this credit, you must have filed your taxes and claimed the appropriate deductions and credits. The $7,830 credit is typically awarded to individuals who have overpaid their taxes throughout the year or have qualified for certain tax credits that result in a refund.
Additionally, in order to be eligible for this credit, you must have a valid Social Security number and be a U.S. citizen or resident alien. Non-resident aliens are generally not eligible for this credit.
It’s important to note that the $7,830 credit is not a one-size-fits-all amount. The actual amount you receive will depend on a variety of factors, including your income, deductions, and credits claimed on your tax return.
If you have received this credit, congratulations! Be sure to use it wisely, whether it’s paying off debt, saving for the future, or treating yourself to something special. And if you haven’t received it yet, make sure to file your taxes accurately and on time to increase your chances of receiving a big payoff from the IRS.
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- IRS tax return credit
- Tax return eligibility
- IRS credit requirements
- Tax return payoff
- $7,830 IRS credit
- Tax credit eligibility
- Tax return benefits
- IRS refund requirements
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- IRS tax credit guidelines
#credit #IRS #Requirements #eligibility #tax #return #move #big #payoff
Asuwish Phone Case for Cloud Mobile Stratus C7 Wallet Cover with Tempered Glass Screen Protector and Leather Flip Credit Card Holder Stand Flower Folio Purse Cell Accessories C_7 C 7 Women Men Green
Price: $13.99
(as of Jan 28,2025 02:13:55 UTC – Details)
【Compatible Models】: Compatible with Cloud Mobile Stratus C7, NOT compatible with other devices.【Gift】: We will send the phone case with 1 piece tempered glass screen protector + 1 piece detachable wrist strap. It would be a nice gift for your lover, your family and your friends.
【Compatible Models】: Compatible with Cloud Mobile Stratus C7, NOT compatible with other devices.
【Gift】: We will send the phone case with 1 piece tempered glass screen protector + 1 piece detachable wrist strap. It would be a nice gift for your lover, your family and your friends.
【Card Holder】: 3 card slots securely hold your cards and some cash without taking wallet outside.
【Kickstand】: The Kickstand can be converted into a multi-angle comfortable view for reading, watching videos or facetime.
Introducing the Asuwish Phone Case for Cloud Mobile Stratus C7 – the ultimate wallet cover for your device! This case comes with a tempered glass screen protector and a leather flip credit card holder, making it the perfect all-in-one solution for your cell phone accessories.Not only does this case provide maximum protection for your phone, but it also features a stylish flower folio design that is perfect for both women and men. The green color adds a pop of color to your device, making it stand out from the crowd.
With a built-in stand, this wallet cover allows you to easily watch videos or video chat hands-free. The credit card holder is perfect for keeping your essentials organized and easily accessible.
Don’t settle for a boring phone case – upgrade to the Asuwish Phone Case for Cloud Mobile Stratus C7 and make a statement with your device!
#Asuwish #Phone #Case #Cloud #Mobile #Stratus #Wallet #Cover #Tempered #Glass #Screen #Protector #Leather #Flip #Credit #Card #Holder #Stand #Flower #Folio #Purse #Cell #Accessories #C_7 #Women #Men #Green,stratus c8 caseAsuwish Phone Case for Cloud Mobile Stratus C7 Wallet Cover and Tempered Glass Screen Protector Leather Flip Credit Card Holder Stand Lanyard Wrist Strap Slot Cell Accessories C_7 C 7 Women Men Brown
Price: $20.99
(as of Jan 27,2025 16:01:02 UTC – Details)
【Compatible Models】: Compatible with Cloud Mobile Stratus C7, NOT compatible with other devices.【Gift】: We will send the phone case with 1 piece tempered glass screen protector + 1 piece detachable wrist strap. It would be a nice gift for your lover, your family and your friends.
【Compatible Models】: Compatible with Cloud Mobile Stratus C7, NOT compatible with other devices.
【Gift】: We will send the phone case with 1 piece tempered glass screen protector + 1 piece detachable wrist strap. It would be a nice gift for your lover, your family and your friends.
【Wallet】: 10 card slots, 1 cash bags, 1 zipper coin wallet and mobile phone shells, make your life and work more convenient. It can replace bulky wallets, a variety of colors are available for men, women, girls and Teens of all ages.
【Kickstand】: The Kickstand can be converted into a multi-angle comfortable view for reading, watching videos or facetime. Wireless charging compatible.
Introducing the Asuwish Phone Case for Cloud Mobile Stratus C7!This wallet cover is not only stylish but also functional, with a built-in tempered glass screen protector to keep your phone safe from scratches and cracks. The leather flip design not only looks sleek but also provides full protection for your device.
What sets this phone case apart is the credit card holder, allowing you to conveniently carry your essential cards with your phone. The stand feature is perfect for watching videos or video calling, and the lanyard wrist strap slot ensures that your phone is always within reach.
Whether you’re a woman or a man, this brown phone case is a versatile accessory that will complement any outfit. Upgrade your phone with the Asuwish Phone Case for Cloud Mobile Stratus C7 today!
#PhoneCase #Asuwish #CloudMobileStratusC7 #WalletCover #TemperedGlassScreenProtector #LeatherFlip #CreditCardHolder #LanyardWristStrap #CellAccessories
#Asuwish #Phone #Case #Cloud #Mobile #Stratus #Wallet #Cover #Tempered #Glass #Screen #Protector #Leather #Flip #Credit #Card #Holder #Stand #Lanyard #Wrist #Strap #Slot #Cell #Accessories #C_7 #Women #Men #Brown,cloud mobile c8 phone casePeter Laviolette Gives Credit To Newly Acquired Defensemen For Season Turnaround
The additions of Urho Vaakanainen and Will Borgen have been crucial in the New York Rangers’ most recent success.
Through January, the Rangers have completely shifted gears. The season seemed lost, but now, the Blueshirts are right back in the playoff hunt.
What exactly sparked this resurgence?
Peter Laviolette credits Vaakanainen and Borgen for solidifying the team’s defense and really turning the whole season around.
The Rangers traded for Vaakanainen and Borgen a few weeks apart from each other and it was shortly after the two defensemen arrived when New York started to find their footing in the Eastern Conference.
What exactly makes them so impactful though?
“I think they are good two-way defensemen, but I think they think about the game defensively and how they can defend,” Laviolette said. “They are big, they are strong, they are physical, they close quickly. I think they have good sticks.
“They are competitive with the defensive aspect to the game. From a defensive standpoint, we can put out there that close out quick, can defend, have sticks and that’s really their MO. I think that has helped our team.”
The Rangers acquired Vaakanainen from the Anaheim Ducks in the Jacob Trouba trade while acquiring Borgen from the Seattle Kraken in the Kaapo Kakko trade.
Vaakanainen and Borgen are playing over 15 minutes per game as Laviolette has put trust in them to serve substantial roles.
It’s important to note that New York’s defensive game has ascended since these players acclimated into the lineup.
There is hope for the Rangers again, something Vaakanainen and Borgen have a big part to do with.
In a recent press conference, Nashville Predators head coach Peter Laviolette gave credit to the team’s newly acquired defensemen for their impressive season turnaround. Laviolette praised the efforts of the new additions to the roster, highlighting their strong defensive play and ability to contribute offensively.“These guys have really stepped up and made a huge impact on our team,” Laviolette said. “Their defensive prowess and ability to move the puck up the ice quickly have been instrumental in our recent success.”
The Predators have seen a significant improvement in their overall defensive play since adding these new players to the lineup. Their ability to shut down opposing offenses and create scoring opportunities has been a game-changer for the team.
“I can’t say enough about the contributions these guys have made,” Laviolette added. “They have brought a new level of competitiveness and skill to our defense, and it’s been a key factor in our recent surge up the standings.”
As the Predators continue to push for a playoff spot, the impact of these new defensemen will be crucial to their success. With their strong play on both ends of the ice, they have helped solidify the team’s defensive core and given them a fighting chance in the postseason.
Overall, Laviolette credits the newly acquired defensemen for helping to turn the season around and believes they will be key players in the team’s quest for a deep playoff run.
Tags:
- Peter Laviolette
- Newly acquired defensemen
- Season turnaround
- Nashville Predators
- NHL
- Hockey
- Sports
- Player acquisitions
- Team performance
- Coach praise
#Peter #Laviolette #Credit #Newly #Acquired #Defensemen #Season #Turnaround
Upset about your credit card interest rate? The CFPB wants to hear from you
Americans have accumulated over $1 trillion in credit card debt. For context, a stack of one trillion dollar bills would wrap around the Earth more than three times.
Almost more troubling than the total amount of U.S. credit card debt are the sky-high interest rates consumers owe on their balances—APRs that have been climbing higher as market interest rates rise. In late 2021, the average interest rate for a credit card was about 14.51%. By 2024, it was over 21%—and many Americans find themselves with cards charging as high as 30%.
The Consumer Financial Protection Bureau (CFPB) has begun an investigation into credit card interest rates. The agency is encouraging consumers to submit their thoughts on their rates, terms, and conditions.
“As Americans pay off their credit card bills from holiday spending, many are concerned about credit card interest rates that often surpass 30%,” said CFPB Director Rohit Chopra on X, announcing the initiative. “A few credit card companies dominate the market, and average interest rates have creeped up significantly over the past decade.”
CFPB is seeking public feedback in seven areas:
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The terms of credit card agreements and the practices of credit card issuers
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Whether credit card plan disclosures of terms, fees, and other expenses are helpful
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The adequacy of protections against unfair or deceptive practices relating to credit card plans
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The cost and availability of consumer credit cards
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The safety and soundness of credit card issuers
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The use of risk-based pricing for consumer credit cards
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Consumer credit card product innovation
Consumers can respond to individual questions or comment generally about how the credit card market is functioning. Following analysis of consumer feedback, the CFPB will publish additional research to inform the policy debate.
The bureau is mandated to conduct this research every two years under orders of the CARD Act. The 2023 report noted that add-on products, fee harvester cards, and deferred interest products were still major concerns in the credit card market. Transparency issues, including online disclosures, rewards products, and grace periods, are also major worries.
The CFPB has not been shy about its feelings about credit card companies. Last year, a new regulation capped most credit card late fees at $8. The CFPB also announced it was cracking down on deceptive credit card reward tactics.
“Large credit card issuers too often play a shell game to lure people into high-cost cards, boosting their own profits while denying consumers the rewards they’ve earned,” Chopra wrote in late 2024.
While Chopra and CFPB’s focus on credit cards, interest rates, and points worries some consumers who enjoy cashback bonuses, the future of the CFPB work is unclear. There remain questions about whether the Trump administration will replace Chopra or dismantle the agency.
During his campaign, Trump said he wanted to cap credit card interest rates at 10%.
Fortune reached out to the American Banking Association, CFPB, Capital One, and Chase for comment but did not hear back. Citi declined to comment.
This story was originally featured on Fortune.com
Are you frustrated with the high interest rate on your credit card? The Consumer Financial Protection Bureau (CFPB) wants to hear from you.Credit card interest rates can often be overwhelming and make it difficult to pay off debt. The CFPB is committed to protecting consumers and ensuring fair and transparent practices in the financial industry.
If you have experienced high interest rates or other issues with your credit card, the CFPB wants to know about it. You can submit a complaint through their website or contact them directly to share your concerns.
Your feedback is important in helping the CFPB identify and address issues in the credit card industry. Don’t hesitate to speak up and let your voice be heard. Your input could lead to positive changes that benefit consumers like you.
Tags:
credit card interest rate, CFPB, Consumer Financial Protection Bureau, credit card complaints, high interest rates, financial regulation, credit card companies, financial grievances, interest rate disputes, CFPB feedback
#Upset #credit #card #interest #rate #CFPB #hear-
RFK Jr. reports up to $1.2M in credit card debt, $30M net worth
From a multimillion-dollar law firm payout to six-figure endorsements and book deals, President Donald Trump’s nominee for health and human services secretary, Robert F. Kennedy Jr., raked in at least $12 million in total income in the past two years, new personal financial disclosure forms show.
Kennedy boasted a vast amount of wealth across various investment funds, bank accounts and real estate properties totaling between $8.6 million to $33.4 million. However, he also reported a staggering amount of liabilities — between $3.4 million and $12.7 million — which could put him in the red on paper.
Kennedy’s liabilities include up to $1.2 million in credit card debt to American Express at a 23% revolving interest rate and three 30-year mortgages worth up to $10.5 million, according to the filing.
In this Aug. 23, 2024 file photo, Republican presidential nominee former President Donald Trump shakes hands with Robert F. Kennedy Jr. at a campaign rally at the Desert Diamond Arena in Glendale, Ariz.
Evan Vucci/AP
The exact values of his total assets and liabilities are unclear because federal financial disclosures are reported in ranges.
A major chunk of Kennedy’s income since 2023 was his nearly $9 million payout from his law firm Kennedy & Madonna LLP, which is now called Madonna & Madonna LLP after Kennedy resigned last week.
His main source of income from the past year stemmed from hefty referral fees from multiple law firms, arrangements which Kennedy noted in his ethics agreement that he will terminate upon his confirmation. However, he stated he plans to retain a contingency fee interest in cases that do not involve the U.S. government.
In his ethics agreement, Kennedy disclosed that among the cases he has referred to the Wisner Baum law firm are claims filed under the National Vaccine Injury Compensation Program (VICP), from which he said he will divest his interest.
Kennedy, who has been a vocal supporter of cryptocurrency and has spoken at multiple Bitcoin conventions, also reported owning between $1 million to $5 million in Fidelity’s Bitcoin fund, the filing shows.
Kennedy also disclosed smaller holdings in biotech companies Dragonfly Therapeutics and CRISPR Therapeutics AG, as well as in other companies like Progressive Corp, Amazon and Apple, from which he said he plans to divest after his confirmation.
Credit card debt potentially doubled in 6 months
Kennedy’s credit card debt potentially doubled in just six months, a comparison of his liabilities in his new disclosure filing and his disclosure from last year suggest.
In July 2024, Kennedy, as a presidential candidate, disclosed having credit card debts to American Express worth $360,004 to $715,000, at roughly 23% revolving interest rate.
In his latest disclosure submitted in late December 2024 and publicly released today, Kennedy’s American Express debts snowballed into between $610,000 and $1.2 million.
It’s unclear how much, exactly, his credit card debt increased in the past few months because liabilities are reported in ranges, but the latest disclosure shows his debts have potentially grown exponentially.
Money from book deals
Kennedy is set to earn millions from multiple book deals, including up to $4 million in advances for books titled “Unsettled Science” and “A Defense for Israel.” Kennedy also earned $1,000 for an advance for a book titled “Vax-UnVax: Let the Science Speak.”
According to his disclosure, two of the three books have already been written prior to his nomination, and he does not plan to engage in “writing, editing, marketing, or promotional services” while serving as HHS Secretary.
Kennedy earned little income from the fourteen books he has already published – such as “American Values: Lessons I Learned from my Family” and “Vaccine Villains: What the American Public Should Know about the Industry” — making less than $200 from each title, according to the disclosure form.
Money from endorsements
Kennedy earned $100,000 from his endorsement of a boxing ball game called Boxbollen in a video he posted on his social media accounts last month, though he returned $50,000 after cancelling the contract following his nomination as health and human services secretary.
“Mr. Kennedy had a pre-existing contract prior to his nomination, after posting the video – he realized it was best to delete it and cancel the contract,” a source close to Kennedy told ABC News in November.
Kennedy also earned $200,000 in speaking fees during three days in November, speaking at the Rockbridge Fall Summit in Las Vegas — organized by a conservative donor network co-founded by Vice President JD Vance – and Genius Network Annual Event in Scottsdale, Arizona.
Hollywood money
Kennedy also disclosed dozens of sources of compensation from his wife Cheryl Hines, an actress best known for her role on HBO’s “Curb Your Enthusiasm.”
U.S. Secretary of Health and Human Services nominee Robert F. Kennedy Jr. and his wife Cheryl Hines depart at the conclusion of the inauguration ceremony for President Donald Trump, Jan. 20, 2025, in Washington.
Chip Somodevilla/POOL/AFP via Getty Images
In addition to that show, Hines earns residual payments from multiple films and television shows including “Friends,” “Herbie,” “Waitress,” “The Conners,” “The Flight Attendant” and “A Bad Moms Christmas.”
Hines also received a $600,000 advance payment for her memoir “My Shade of Crazy.”
Oil rIghts, properties in Chicago
As was disclosed in his previous financial disclosure from his 2024 presidential bid, Kennedy had previously owned oil and gas rights in Oklahoma, Texas, Kansas, Louisiana, Mississippi, Alabama and Florida but sold them in the past year, netting roughly $55,000 from the sales, according to the filing.
He also reported owning commercial properties in Chicago worth between $700,000 and $1.5 million.
In a recent financial disclosure report, Robert F. Kennedy Jr. revealed that he is carrying up to $1.2 million in credit card debt. Despite this substantial debt, Kennedy’s net worth is estimated to be around $30 million.Kennedy, an environmental activist and attorney, has faced criticism in the past for his extravagant lifestyle and spending habits. This latest revelation of his credit card debt only adds to the scrutiny of his financial decisions.
It is unclear how Kennedy accumulated such a large amount of credit card debt, but it serves as a reminder that even those with significant wealth can struggle with financial management.
As Kennedy works to address his debt and improve his financial situation, it will be interesting to see how he navigates this challenge and what steps he takes to secure his financial future.
Tags:
RFK Jr., credit card debt, net worth, financial report, Robert F. Kennedy Jr., debt management, personal finance, millionaire, financial news, financial updates, wealth management, financial planning.
#RFK #reports #1.2M #credit #card #debt #30M #net #worthIRS sending stimulus checks for unclaimed recovery rebate credit
Stimulus checks have come and gone for most people, along with the pandemic. But oddly enough, some 1 million taxpayers are receiving extra cash out of the blue from the IRS.
Most of these people filed a 2021 tax return three years ago but somehow they skipped claiming a much-talked-about stimulus credit worth a great deal of money. Most likely, they didn’t realize they qualified.
Those who will receive this special payment either left the line for the recovery rebate credit blank on the 2021 return or filled in a $0 when they were actually eligible for the recovery rebate credit.
Now that the money is being sent, you need to check your bank account. Watch your mailbox. Some filers will receive the money via direct deposit, others could receive it by paper check in the mail. The IRS said it would send letters alerting taxpayers that the money is coming.
The Internal Revenue Service is taking a special step to issue the money to these taxpayers after the agency reviewed its internal data, which indicated eligibility.
The recovery rebate credit was the last of three rounds of stimulus payments issued to people by the federal government to shore up the economy after the pandemic hit.
When will an extra stimulus check arrive?
The IRS did not give exact dates for when to look out for the cash. But payments were set to go out automatically in December, according to an IRS statement issued Dec. 20, and most payments were expected to arrive by late January.
Some people who overlooked the credit when filing a tax return three years ago might find that the money might be in their bank accounts in a few days. Maybe, it’s already there.
Eligible taxpayers in this group don’t need to do a thing to receive this stimulus money.
The IRS did not have a breakdown for how much money might be heading to specific states, such as Michigan, according to Luis Garcia, a spokesperson for the IRS in Detroit.
No doubt, we’re talking about a large number of people. It would, after all, take more than a dozen big NFL stadiums to seat 1 million people. It is a lot of folks.
More:When will IRS accept, start processing 2024 tax returns? Official date announced
More:Guide to 2024 taxes: W-2 arrival dates, 1099-K form confusion, free filing options
But remember, everyone isn’t receiving money now. Most people who qualified already received this cash a few years ago. And 1 million taxpayers is really only a tiny fraction of the more than 140 million tax returns that the IRS expects to receive for tax year 2024 before this year’s April 15 deadline.
IRS Commissioner Danny Werfel called the special payments an “example of our commitment to go the extra mile for taxpayers.”
“Looking at our internal data, we realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible,” Werfel said in a statement issued Dec. 20.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
How much stimulus cash might I receive?
The dollar amount that people will see will vary significantly.
The recovery rebate credit amounted to up to $1,400 per person when claimed on 2021 federal income tax returns. Or it was up to $2,800 for a married couple filing jointly. The credit also would apply to all qualifying dependents claimed on a tax return.
A single person with no dependents could have received a maximum credit of $1,400.
Married taxpayers who filed a joint return that claimed two qualifying dependents on the 2021 return could have qualified for up to $5,600.
But the amount of the credit could have been reduced based on your income, even if you qualified.
The 2021 recovery rebate credit includes additional amounts for each qualifying dependent claimed on their return, not just children under 17.
We’re talking about up to $1,400 in stimulus money for each qualifying dependent claimed on the return, including older relatives like college students, adults with disabilities, parents, and grandparents.
The IRS estimated that about $2.4 billion will be distributed as part of this special payment program. That’s an average of $2,400 based on a group of 1 million taxpayers.
Where will the stimulus money be sent?
The stimulus payment will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address of record.
Did you end up closing the bank account you had a few years ago? In such cases, the IRS said, the bank will return the payment to the IRS and the refund will be reissued to the tax filer’s address of record.
What’s the deal with these stimulus checks?
The money being sent out now involves the third stimulus or economic impact payments that were issued after the start of the COVID-19 pandemic in early 2020.
Back in the spring of 2021, the IRS began sending these payments in advance based on information from your 2020 or 2019 tax return. Many people received thousands of dollars in stimulus money roughly four years ago based on information the IRS had at that time.
Those who didn’t receive money in advance or didn’t receive all the money they were qualified to get could claim the recovery rebate credit on Line 30 of the 1040 for the 2021 tax year. People who qualified and correctly claimed the credit on the tax return would have received their stimulus money in 2022, and they wouldn’t receive any more money now.
You couldn’t double-dip. The IRS subtracted whatever money you already received directly in advance in 2021 from any credit claimed when you filed a 2021 tax return in 2022.
Unfortunately, tax credits can be confusing and some people just don’t claim them or they make mistakes and think they’re not qualified to get the money.
The third — and last — stimulus payments had a different set of complex rules for who qualified based on their income. The 2021 recovery rebate credit amount dropped to $0 pretty quickly, far more quickly than earlier stimulus programs, based on income.
Singles earning $80,000 or more in adjusted gross income in 2021 couldn’t claim the credit. Married couples earning $160,000 or more couldn’t claim the credit, either.
Based on those tougher new income limits, the IRS noted that some individuals weren’t eligible to claim the 2021 recovery rebate credit even if they received a 2020 stimulus payment.
Who is likely to get stimulus money now?
Let’s rule out who won’t be getting money: Someone who already received all the money they were qualified to get.
And you won’t be getting a windfall now if you never filed a 2021 tax return. The same’s true if you were claimed as a dependent on someone else’s 2021 return, or if you are a nonresident alien for U.S. tax purposes, such as if you are not a lawful permanent resident or do not pass the substantial presence test.
Now, who might qualify now for the special rollout of stimulus money?
Maybe, your income fell substantially in 2021 from previous years, enough so that your income was within the required income limits for the third stimulus.
Maybe the IRS didn’t send an advance stimulus payment, based on your higher income in 2019 or 2020. But you would have still been eligible to claim the recovery rebate credit, based on your 2021 income.
“If the taxpayer saw a fall in their income that year on their next return filing, they could claim some or all of a payment they did not otherwise get earlier, which is the reconciliation process,” said Garrett Watson, senior policy analyst for the Tax Foundation.
Watson said the reconciliation process for the recovery rebate credit was always in the taxpayer’s favor, meaning they did not need to pay back any advance payment if their income rose in 2021 and they would not have been eligible otherwise.
“If you qualified for a third payment based on your 2019 or 2020 tax return,” the IRS notes, “the law doesn’t require you to pay back all or part of the payment you received based on the information reported on your 2021 tax return.”
Some parents of toddlers now might be seeing that surprise stimulus payment. You might qualify if you had a baby, adopted a child or had a child placed in your foster care in 2021.
Or some college grads and others might qualify if they could no longer be claimed as someone else’s dependent in 2021 and meet the income limits.
Back in April 2022, I wrote a column about how some people in specific situations who actually qualified for the recovery rebate credit could easily overlook it.
Parents of a child born in 2021, for example, could claim the recovery rebate credit on their 2021 tax return to receive a stimulus payment for a newborn.
Another quirk at the end of the age spectrum involved college grads. Someone who was claimed on their parents’ return in 2020 but was no longer a dependent in 2021 could look into whether they would qualify for the recovery rebate credit when they filed their own return in 2022.
As I said, the rules on the 2021 return were confusing. Nothing about this stimulus program was simple.
The IRS, of course, had more than its fair share of headaches with a backlog of amended returns, some of which involved stimulus credits. The IRS still had a crush of paperwork, including a 1.5 million backlog of unprocessed amended returns in late 2022, before shifting into the 2023 tax season.
Why is the IRS sending stimulus money now?
It’s hard to speculate on why the IRS decided to take the unusual step of issuing payments to 1 million taxpayers now.
“The change in administrations could have motivated the agency to tie up various loose ends,” Watson said.
In early December, then-President-elect Donald Trump announced that he was selecting Billy Long, a former Missouri congressman, to take charge of the IRS.
IRS Commissioner Werfel, who arrived at the IRS in March 2023, had repeatedly stated that he intended to complete his full term through 2027. But Werfel announced his resignation Jan. 17 before Inauguration Day.
“After significant introspection and consultation with others, I’ve determined the best way to support a successful transition is to depart the IRS on Jan. 20, 2025,” Werfel said in his statement.
He noted that Deputy Commissioner Douglas O’Donnell would step in as acting commissioner to ensure a smooth transition until a new commissioner is confirmed.
What if you didn’t file a 2021 return?
The news of the special stimulus rollout might have some asking whether there a way to still claim a recovery rebate credit.
If you didn’t file a 2021 tax return yet, you still have until April 15 to file a 2021 return to claim the credit and any other refund you might be owed. You cannot file the 2021 return after that April 15 deadline.
The IRS notes that eligible taxpayers who did not file a 2021 return must file a tax return to claim a recovery rebate credit, and that’s true even if their income from a job, business or other source was minimal or nonexistent.
Any recovery rebate credit received does not count as income when determining eligibility for federal benefits such as Supplemental Security Income, Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families and the Special Supplemental Nutrition Program for Women, Infants, and Children.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
If you haven’t received your stimulus check yet, there may be good news for you. The IRS has announced that they will be sending out additional stimulus checks for individuals who are eligible for the Recovery Rebate Credit but have not yet claimed it.This credit is available to those who did not receive the full amount of the Economic Impact Payments they were entitled to in 2020. It is important to note that this credit is based on your 2020 tax return, so if you did not file a return last year, you may need to do so in order to claim the credit.
If you believe you are eligible for the Recovery Rebate Credit and have not yet received your payment, be on the lookout for a check from the IRS in the coming weeks. Make sure to keep an eye on your mailbox and bank account to ensure you don’t miss out on this much-needed financial assistance.
If you have any questions about the Recovery Rebate Credit or your eligibility for the stimulus payment, it is recommended to contact the IRS or a tax professional for assistance. Don’t miss out on this opportunity to claim the money you are owed!
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IRS, stimulus checks, recovery rebate credit, unclaimed funds, tax credits, government payments, economic relief, financial assistance, tax refunds, IRS updates, stimulus package, pandemic relief, tax season, money management, stimulus eligibility, tax benefits, IRS announcements.
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