News On Stimulus Payments, Child Tax Credit and Refunds
The IRS has been the busiest agency of government for the past 18 months. To say the agency is multitasking is an understatement. Not only is it collecting taxes but it is also sending money out to millions of Americans!
The IRS is just about finished sending out refunds on 2019 tax returns filed last July. It sent out $600 stimulus payments in January, and is still sending those $1,400 stimulus payments to millions of Americans.
The IRS is about to start sending out monthly child credit benefit checks to millions of families starting July 15. Most parents of children under 6 at year-end 2021 get $300 per month; most parents of children aged 6 to 17 receive $250 per month. Parents must have single income under $75,000 or joint income under $150,000 to qualify. (See more details below.)
Finally, the IRS is refunding taxes paid on the first $10,200 of unemployment benefits. As well, it is sending out “PlusUp” payments to those who received less than the full $1,400 rebate (based on 2019 returns) and qualified for more stimulus based on 2020 returns. That means they must compare income on both year’s returns.
Where’s My Refund
If you haven’t received your 2020 refund, be patient. The online tool at IRS.gov/refunds is not always helpful, even in letting you know that your return has been received. That’s why you should always mail paper returns and quarterly estimates using certified mail, with return receipt requested.
Those who filed electronically and included direct deposit information should have received most refund checks already. But some are delayed as the IRS reviews returns for various reasons.
The good news is that if your refund is delayed, the IRS will pay 3% interest back to April. That’s more than you can get in a bank safely, for sure!
Lost Stimulus Payments
Those $1,400 stimulus payments are still going out. But many people are worried that their payment went astray. (You should have claimed missing earlier payments of $1,200 and $600 on your 2020 tax return.) Eventually, you can get that $1,400 as a credit on your 2021 return when you file next April. But that’s a long time to wait!