FAMILIES can get up to $1,400 each from the IRS thanks to the Cash Back Credit.
The recovery discount credit is available to those who did not receive a third stimulus check or received only a partial check. Taxpayers are encouraged to use the credit for tax returns.
In some cases, even someone who received a third $1,4000 stimulus check can claim a recovery refund credit to increase the amount of the refund and reduce the taxes they have to pay. pay.
Eligibility for the credit is the same as the rules for third-round stimulus checks. The biggest difference is that stimulus check eligibility is typically based on information from your 2019 or 2020 tax return.
However, for the recovery discount credit, the information is based on your 2021 tax return. This means you may be eligible for a stimulus check but not for credit and vice versa.
You can claim a recovery discount credit if, in 2021, you are a U.S. citizen or alien residing in the United States, cannot be claimed to be dependent on someone else’s return, and have valid Social Security number to work by your 2021 tax return due date.
How to Calculate Cash Back Credit
Similar to a stimulus check, to calculate your recovery credit back amount starts with the “base” amount.
For the average person, the base amount for the 2021 credit is $1,400. For married couples with joint income, the base amount will be $2,800.
Then, for each dependent claimed to be reimbursed, add another $1,400.
There is a page-long worksheet for Form 1040 that can be used to calculate your credit amount. Tax preparation software will also run the numbers for you to calculate the credit.
How long will it take for you to receive your refund?
If you file electronically and choose direct deposit, the IRS says you can expect your returns in three weeks, assuming no other issues.
Those seeking to qualify for the child tax credit or earned income tax credit should note that the IRS cannot issue those refunds before mid-February.
This is an attempt to prevent fraud.
Eligible seekers for those credits can still start applying on January 24, along with others.
How can you track your refund?
You may want to know your exact return date. The average applicant has received $2,323 to date.
If it has been more than 21 days since you filed your application, the IRS encourages you to contact them.
If you still have within 21 days, you can use IRS Tracking Tool Online.
To check your refund status online, you’ll need to provide your Social Security number, your application status, and your expected refund amount.
The US newspaper The Sun also mentioned the tax deadline in more detail.
Plus, we explain why your tax refund may be smaller in 2022.
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https://www.the-sun.com/money/4792919/recovery-rebate-credit-irs-refund-stimulus/ Families can get up to $1,400 each from the IRS