The Internal Revenue Service has successfully distributed the first, second, and third rounds of stimulus checks. However, for those who have yet to receive their Financial Aid in 2023, there’s an opportunity to secure these Federal Relief Checks by taking action. By filing their 2020 and 2021 tax refunds, individuals can potentially obtain the payments corresponding to the first and second, as well as the third stimulus check, respectively.
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Stimulus Check 2023
In 2020, the government disbursed the initial and subsequent stimulus checks to eligible taxpayers as part of the CARES Act. Then, in 2021, a third stimulus check was made available through the American Rescue Plan. While the IRS has made significant efforts to reach eligible recipients, some individuals may not have received their payments, and filing for tax refunds is a proactive step to access these financial resources. This process ensures that those who may have missed out on the earlier rounds of stimulus support have a chance to claim their entitled funds and alleviate financial challenges during these trying times.
Eligibility Criteria for Stimulus Check
Individuals who paid taxes in 2020 and 2021 but received none of the three stimulus checks have the option to claim the Recovery Rebate Credit by e-filing their tax returns for those respective years. Individuals earning up to $75,000 (or $112,500 as heads of households) and married couples filing jointly with incomes up to $150,000 are eligible. Payments decrease by $5 for every $100 earned above these thresholds, phasing out completely at $87,000 for individuals and $174,000 for couples.
State Wise Updates, Eligibility, Payment Status On Stimulus Checks
♦ Payment: $1,312 as the 2023 permanent fund dividend (PFD).
♦ Distribution: The first disbursement for electronically submitted applications will be sent on October 5. For all applications, payments to eligible recipients determined by October 18, 2023, will be distributed on October 26.
♦ Payment: Property tax rebate, rent, and heating credit (PTC) worth up to $1,044.
♦ Eligibility: Income must not exceed $16,925 for single filers or $22,858 for joint filers.
♦ Distribution: Payments begin on October 5 or 15 for applications processed by September 10.
♦ Payment: Approximately 14% rebate of state tax liability.
♦ Eligibility: Those who paid Massachusetts personal income taxes for the 2021 tax year and filed a 2021 state tax return by September 15, 2023.
♦ Distribution: Payments sent approximately one month after filing a tax return, so those who filed in September will receive payments in October.
♦ Payment: Individual income tax refunds, providing $1,250 (or the amount on line 20 on Form 2) for individual taxpayers and $2,500 (or the amount on line 20) for married couples filing jointly.
♦ Property Tax Rebate: Up to $675 per year for property taxes paid on a primary residence.
♦ Distribution: Individual tax refunds began in July and will continue until December. Property tax rebates are sent as claims are processed, and some recipients may receive payments in October.
♦ Payment: Rebate of $500 for single filers and $1,000 for joint filers who filed a 2021 personal income tax (PIT) return.
♦ Distribution: Checks and direct deposits were mailed in June, but eligible residents have until May 31, 2024, to file the 2021 PIT return to receive their rebate. Those who filed recently may receive payments in October.
♦ Payment: Tax rebate of up to $200 for individuals and up to $400 for couples filing a joint tax return.
♦ Eligibility: File taxes by November 1 to be eligible for this rebate.
♦ Payment: Working Families Tax Credit (WFTC) offering payments between $50 and $1,200.
♦ Application Deadline: Residents have until December to apply for WFTC.
♦ Payment: It will shipping tax rebate checks in the coming months, with amounts of up to $300 for joint filers and $150 for single filers who successfully filed their 2022 tax returns.
Please note that eligibility criteria and distribution dates may vary, so residents should check their state’s official websites for detailed information and updates.
Guide For E-Filing Of 2020 And 2021 Tax Returns
Here’s a brief guide on how to do it:
1. Gather Your Documents: Collect all necessary documents, including W-2s, 1099s, and any other income-related forms for the tax years 2020 and 2021. Organizing your financial records is the first step.
2. Choose an E-Filing Platform: Select a reputable tax preparation software or online service to e-file your returns. Options like TurboTax, H&R Block, and IRS Free File offer user-friendly interfaces.
3. Verify Eligibility: Ensure you meet the eligibility criteria for the stimulus payments for both years. Typically, these criteria involve income thresholds and filing status.
4. Provide Accurate Information: Carefully input your financial data, including income, deductions, and dependents. Accuracy is crucial to claim the correct amount.
5. Check for Recovery Rebate Credits: Look for the Recovery Rebate Credit section in the tax software. This is where you claim any unissued or unpaid stimulus payments.
6. Submit Your Returns: After completing your tax returns, e-file them through the chosen platform. Make sure to double-check for errors before submitting.
7. Monitor Your Status: Keep track of your tax return’s status through the IRS “Where’s My Refund?” tool. It will also help you track your stimulus payment.
8. Direct Deposit: Consider setting up direct deposit for faster refunds and stimulus payments.
E-filing for tax returns in 2020 and 2021 is a straightforward process that allows you to claim any outstanding stimulus payments owed to you. It’s a proactive step toward securing the financial support you deserve during these challenging times.