IRS Tax Fourth Stimulus Checks for Eligible Individuals
IRS tax fourth stimulus checks are proposed and suggested programs by Lawmakers and millions of individuals to the U.S. federal government. It will provide financial assistance for its eligible individuals, especially for those who belong to the low-income community and unemployed individuals.
The Internal Revenue Service (IRS) plans to distribute fourth stimulus checks as part of the American Rescue Plan Act by the government. This plan is established partly due to the people’s evident need for assistance due to the pandemic, especially now that COVID-19 cases are continuously elevating as the new variant speeds up the infection.
Knowing What is A Stimulus Check
A stimulus check is a check occasionally issued to taxpayers by the US government. Checks are issued after careful evaluation and process of the citizens’ income tax return records.
If determined eligible for a stimulus check, the IRS will mail you the process or procedures on how to claim your check. Married couples who are filing their taxes jointly will receive twice the amount that individual taxpayers receive.
For individuals who have unpaid back taxes, the amount will be automatically deducted from the stimulus check received.
IRS Tax Fourth Stimulus Checks
Although the endeavour is still under debate between congress and the white house, many Americans are keeping their fingers crossed for the possibility of fourth stimulus checks.
Reports also say that the fourth stimulus checks to be issued early this 2022 will require more specific qualification criteria. Unlike the previous stimulus checks, this time, the government’s focus is on parents who have dependents born in 2021.
Who is Eligible for IRS Tax Fourth Stimulus Checks
As part of the American Rescue Plan Act, the new measures set for the fourth stimulus check includes about 1,400 US dollars of payments to be issued to individuals/parents and their children. This stimulus check to be issued is part of the Recovery Rebate Credit payments.
Those individuals who have been able to receive previous stimulus payments in full may still be eligible to claim their recovery rebate credit upon filing the 2021 income tax return.
Recovery Rebate Credit
As stated earlier, the stimulus checks or known as the economic impact payments that were received by taxpayers the previous year are part of the Recovery Rebate Credit payment.
If you are one of those individuals who were not able to receive the full amount of the stimulus check, you may receive the remaining amount upon the next filing of your income tax return in 2022.
Further, dependents who were born in the year 2021 might be eligible to receive fourth stimulus checks too, since they were not included in the calculation and payment of the previous stimulus checks issued.
Eligibility for The Recovery Rebate Credit
Your eligibility for the Recovery Rebate Credit will be determined based on your 2021 tax return which will be completed this year, 2022.
Further, those individuals who were qualified for payments from the American Rescue Plan Act may receive their payments as part of the 2021 tax refund.
If you were one of those who received their third stimulus check payments in full, you may be eligible to receive the Recovery Rebate Credit early this 2022 so long as you have eligible dependents in 2021.
Listed below are some of the basic eligibility requirements for the Recovery Rebate Credit:
1. Dependents must be 19 years or below unless they are currently a student;
2. Dependents may be suffering from a permanent disability (this applies to any age);
3. Dependents must fall under any of the following categories:
• Foster child;
• Half brother/sister; or
• Descendants of any of the formerly mentioned categories.
Other than dependent requirements, there is also a specific income requirement in order to be eligible for the Recovery Rebate Credit check:
• Individual Taxpayers should have an adjusted gross income of 75,000 US dollars or less; and
• Married couples who are filing taxes jointly should have an adjusted gross income of 150,000 US dollars.
Eligibility for Plus-Up Payments
Plus-Up Payments refer to additional checks issued to eligible taxpayers. Usually, Plus-Up payments are issued to those who were able to receive stimulus checks in the previous years.
Eligibility for such checks is based on the individual’s data in the Social Security Administration and in their tax return files in the previous year.
For instance, if you acquired a lower income in the year 2020 than in the year 2019, then you may be eligible to receive Plus-Up Payments.
Administration of Stimulus Checks In Each State
The federal government will provide funds to every state in the country. These funds will be used for providing stimulus checks to qualified individuals and dependents.
Although, each state has their policies and procedures on how to provide these funds to people. States like Connecticut, California, Florida, New York, and Tennessee are just a few among the states that organized such laws in 2021.
2022 Stimulus Check Payment Timelines and Schedules
March 2022: Federal Reserve’s Bond-Buying Program Ends
Due to the rising inflation in the country’s economy, the federal reserve directors have decided to reduce the bond-buying procedures that started in November 2021 and will gradually stop in March of this year. This then will hopefully resolve the current inflation happening.
April 15, 2022: Tax Filing Deadline
The deadline for filing the 2021 income tax return will be on April 15, 2022, Friday. This will then be the period of evaluating income tax returns to determine who is eligible to receive stimulus check payments for this year.
Upon submission of your 2021 tax return, you may then figure out if you are eligible for stimulus payments and if you have payments that you have missed out on.
April 15, 2022: Final Issuance of Child Tax Credit Payment
Upon filing the 2021 tax return, parents should also expect to receive their final Child Tax Credit payment for the year 2021.
The initial payments or the first half of the Child Tax Credit payment
were previously issued, while the final or the second half of the payment will be received this coming April.
Parents may receive about 1,500 up to 1,800 US dollars based on the child’s age and those who have not received or claimed the first half will receive a higher amount this April.
October to November 2022: Midterm Elections
There will be a midterm election to happen this coming November. During the run-up periods until the date of the election, expect some developments in stimulus spending as part of enhancing democrats’ power over the ballot box, because they believe that enhancing stimulus spending will get them a few extra votes for the election.
Stay updated for new announcements and stimulus check status. You can visit Internal Revenue Service
(IRS) to know more about stimulus check payments: