Why the IRS Wants You to Keep Biden’s Stimulus Payment Letter

Why the IRS Wants You to Keep Biden’s Stimulus Payment Letter

The IRS encourages recipients to keep the letter if they believe they received the wrong amount.

 

Here's What You Need to Remember: Biden’s rescue package sent $1,400 direct payments to eligible individuals, plus an additional $1,400 check per dependent. Eligible recipients for the full stimulus payment include single filers earning up to $75,000, and joint filers making up to $150,000.

The Internal Revenue Service sent all stimulus payment recipients for the third round of coronavirus relief a letter confirming that the agency gave them a tax refund, paperwork that’s officially called Notice 1444-C.

 

The letter was signed by President Joe Biden and confirms how much the recipient received from the federal government and the form of payment, whether it was by mail or direct deposit. It also advises the recipient to check the agency’s “Get My Payment” tracker tool to get the status of their third direct payment.

The IRS encourages recipients to keep the letter if they believe they received the wrong amount. The letter can be used as documentation when they file their 2021 tax returns to claim owed money in the future.

The agency sent similar letters in the mail for the first two rounds of direct relief, or Notices 1444-A and 1444-B, which can be used to claim any missing funds from the federal government this year.

The IRS has disbursed roughly 165 million payments so far, worth $388 billion, in nine batches. The White House set aside about $422 billion for direct payments as part of Biden’s American Rescue Plan, meaning that about nine percent of eligible recipients are still waiting for a check.

The latest round of relief included 500,000 payments for individuals who had recently filed a 2020 tax return. The IRS has repeatedly encouraged those who don’t normally file tax returns to submit one this year in order to receive the stimulus payment.

The most recent batch also sent 460,000 supplemental, or “plus-up,” payments for those who had their third stimulus check based on 2019 tax returns but are now eligible for a new or larger payment due to their recently submitted 2020 tax returns. To qualify, a person’s 2020 income must be lower than their 2019 income. People could also be eligible if a baby or dependent was added to their 2020 tax return.

Biden’s rescue package sent $1,400 direct payments to eligible individuals, plus an additional $1,400 check per dependent. Eligible recipients for the full stimulus payment include single filers earning up to $75,000, and joint filers making up to $150,000. Individual filers earning up to $80,000 and joint filers making up to $160,000 will receive smaller amounts. Eligibility is based on the most recent tax return and adjusted gross income.

And eligible taxpayers who were alive as of Jan. 1, 2021 qualify to receive a payment.

Rachel Bucchino is a reporter at the National Interest. Her work has appeared in The Washington Post, U.S. News & World Report, and The Hill. This article first appeared earlier this year.

 

Image: Reuters