Due to the impact of the Covid-19 outbreak, many US citizens have lost their jobs and means of livelihood since 2020. Thus, the federal government has launched a new program since last year to support the citizen’s livelihoods by giving them financial aid during these difficult times.
The first and the second Economic Impact Payments have already been released. To claim the Recovery Rebate Credit, the citizens must file the 2020 tax return. Already after paying out two previous stimulus checks, the third Economic Impact Payment was authorized for processing by the American Rescue Plan Act of 2021. The dispatch of payments of the third Economic Impact Payment has already begun since March 12, 2021, every week.
As per the IRS stimulus check application, individuals and families who haven’t managed to earn adequately will receive $1,200 annually and $2,400 respectively as the Economic Impact Payments from the US government. This is also applicable to those people who haven’t managed to earn anything at all since last year.
How do I apply for a stimulus check?
The process of applying for the IRS stimulus check application is via filing tax returns. Once people file their returns and declare their earnings throughout the year, their applications will be verified by the IRS (internal revenue system) and then they would automatically be deemed eligible to receive the Economic Impact Payment. The following steps would guide the tax return filers to claim the IRS stimulus check amount:
- People can choose to e-file their returns or send their forms 1040 and U.S. Individual Income Tax Return by post.
- The US citizens have to fill up Form 1040 or 1040-SR.
- Then, they would also need to save Notice 1444 in combination with the 2020 tax records.
- An IRS free file tool is provided for easy filing. This is best suited for those people who had a gross income $72,000 or less.
- Other than this, individuals can also make use of the free tax return preparation sites like VITA and TCE.
- Also, some commercial software is available to assist people in easy tax filing.
- Alternatively, people can also take the help of authorized e-file providers.
- Individuals can use the information provided in their credit form 1040 or Form 1040-SR to complete their filing process.
IRS stimulus check details
- First and foremost, the IRS stimulus check is applicable for taxpayers and also for non-filers. Non-filers include those individuals who have either not filed their income tax returns in 2018 or 2019 or those who belong to categories like extremely low income groups, students, veterans, retirement beneficiaries, and others. Non-filers can visit the IRS gov website and then click on the non-filers link.
- The government has also introduced the Recovery Rebate tool to claim missed stimulus amounts.
- The government will pay $1,200 and 2,400 to individuals and married couples who have a gross income of $75,000 and $150,000 respectively. This amount has been increased in the third Economic Impact Payment to $1,400 and $2,800.
- Families with children under the age of 17 would be eligible to receive $500 per child additionally.
- Payments would be credited automatically to people’s accounts from the information obtained from the tax returns filed by them.