ir-2022-72, March 30, 2022
washington – With the completion of special mailings of all 6475 letters to recipients of the third round of economic impact payments, the Internal Revenue Service is reminding individuals to accurately claim any remaining stimulus payments from the third round on your 2021 income tax return as the 2021 catch-up refund credit.
Through December 31, 2021, the IRS issued more than 175 million third-round payments totaling more than $400 billion to individuals and families across the country. Most Round 3 payments were issued in the spring and early summer of 2021. The IRS continued to send additional payments through December if, after their 2020 tax return was processed last year, the taxpayer was eligible. for additional amounts.
as required by law, the irs no longer issues first, second, or third round economic impact payments. Instead, people who are missing a stimulus payment or received less than the full amount may be eligible to claim a recovery refund credit on their 2020 or 2021 federal income tax return.
Most eligible people have already received the full amount of their credit in advance and do not need to include any information about this payment when they file their 2021 tax return. This includes additional payments, called “extra” payments, that The IRS issued people who initially received a Third Round Economic Impact Payment based on their 2019 tax return information and later became eligible for a larger amount based on their 2020 tax return information.
Individuals can securely access their IRS online account to view the full amount of the Round Three Economic Impact Payment issued to them. this information was made available on January 15, 2022, on the tax records page in the online account. For married individuals filing jointly, each spouse will need to log into their own online account or review their own 6475 letter for their share of the joint total payment. See the FAQ on topic g: Finding Your Third Economic Impact Payment Amount to Calculate Your 2021 Recovery Refund Credit for more information.
3rd round economic impact payment not received? double check the logs first
People are encouraged to double check their bank accounts, especially in the early spring and summer of 2021, to see if they received a third-round payment in advance last year.
if an individual did not receive a third round payment, and their irs online account shows a payment amount greater than $0, or if they received notice 1444-c or letter 6475 stating they were issued a payment , you should contact the irs as soon as possible to see if payment tracking is needed. Please note that the online account displays the most up-to-date EIP information, so if a payment was issued and returned to the IRS, the amount shown in the online account may be less than the amount shown on your letter 6475.
Taxpayers should not request payment tracking to determine if they were eligible for a payment or to confirm the amount of payment they should have received.
Individuals do not need to wait until their tracking is complete to file their 2021 tax return. By completing the Recovery Refund Credit worksheet or answering EIP questions in the tax software, taxpayers You have two options:
- use the amount from letter 6475 (or the amount from eip 3 from the online account) to calculate the rrc amount on line 30. contact the irs to track the amount of the eip. Once the EIP trace is complete, the IRS and the taxpayer will be notified of the results of the EIP trace (the account it was sent to and the amount or a copy of the cashed check).
- if the trace indicates the taxpayer received the eip amount, no further action is needed.
- if the taxpayer did not receive the eip amount, the irs will adjust the rrc amount on the tax return and issue any refund.
- if the trace indicates the taxpayer received the eip amount, no further action is needed.
- if the taxpayer did not receive the eip amount, the irs will adjust the rrc amount in returning and issuing any refund.
correct an error after filing the 2021 tax return; no amended declaration is needed
Individuals who made an error in calculating the recovery refund credit and claimed an amount on line 30 for the 2021 recovery refund credit should not file an amended return . The IRS will correct the amount of the 2021 recovery refund credit and send a notice identifying the changes made.
If a correction is needed, there may be a delay in processing the return. If the taxpayer agrees with the changes made by the IRS, no response or action is required to indicate that he agrees with the changes. if the taxpayer disagrees, they can call the toll-free number in the upper right corner of their notice.
An amended return may be required for those who qualify to claim the credit and their records show no Economic Impact Payment was issued
For eligible individuals who did not claim a Recovery Refund Credit on their 2021 tax return (line 30 is blank or $0) and their records do not show the issuance of an Economic Impact Payment, they will need to file a form 1040 -x, modified in usa uu. individual income tax return, to claim the remaining amount of stimulus money for which they are eligible. this includes people who may not have received the full amount of their Round 3 Economic Impact Payment because their circumstances in 2021 were different than they were in 2020.
Individuals can use the interactive tax wizard, Should I File an Amended Return?, to help determine if they should amend their original tax return.
Taxpayers who need to file an amended return to claim the 2021 catch-up refund credit, even if they don’t typically file taxes, should use the worksheet in the 2021 instructions for forms 1040 and 1040-sr to determine the amount of the credit. enter the amount in the refundable credits section of form 1040-x and include “recovery refund credit” in the explanation of changes section.
People who filed their 2021 return electronically and need to file an amended return can file Form 1040-x electronically.
If a taxpayer did not file their 2021 return electronically, they will need to submit a paper version of Form 1040-x and follow the instructions for preparing and submitting the paper form.
more information
- Recovery Refund Credit
- 2021 Refund Refund Credit FAQs