Dunning checks: IRS letter explains if you qualify for a recovery refund credit

through: Laura Morrison, Nexstar Media Wire

Checking COVID-19 Economic Stimulus in Woman's Hand on Blurred American Flag Background. Relief program concept. (Credit: Getty Images)

(WJW) - Those who received a third stimulus check in 2021 are expected to receive a letter in the mail from the Internal Revenue Service for tax reporting purposes soon.

"People who receive these letters should keep them," the IRS said in a statement. "Don't throw them away. "

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The letters are intended to assist you with your 2021 tax returns by explaining in more detail how to claim your Economic Impact (Stimulus) Payments, which are not taxed but must always be claimed.

But what if you miss a stimulus payment?

Are you eligible for and should you apply for a recovery rebate credit? The cover letter will walk you through the process, telling you how much stimulus money you have received, including any "extra payments" and any extra dollars you are still owed.

Valued at up to $ 1,400 for recipients and dependents, the third stimulus checks began to be sent out last March.

Letters are expected to start sending by the end of January. A separate letter is also being sent to families who received child tax credit payments last year.

The passage of the CARES Act sent a first round of direct payments to US taxpayers in April 2020. These checks were followed by another round of payments in December 2020 and then a third round under the American Rescue Plan in 2021. The IRS has also started. make monthly payments to families with children in July 2021 as an advance for the increased child tax credit.

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To learn more about filing your tax returns, which are due April 18, visit the IRS website.