The majority of Americans received their full Economic Impact Payment, or third stimulus check, in 2021, but there's a chance you'll get more money. You may be eligible for an additional $1,400 if you had a baby or added a qualifying child to your household last year. You could also be owed more money if your income changed significantly in 2021.
The third checks were mailed out in January, but those who are due extra money can claim the recovery rebate credit on their 2021 tax returns when they file this tax season. The only catch is that you'll need a specific IRS notification, known as Letter 6475, in order to do so.
What am I supposed to do with Letter 6475?
Keep it until you or your tax preparer are ready to file your 2021 federal return, at which point you can utilize the amount listed on your Recovery Rebate Worksheet to see whether any credit applies.
"Having the wrong amount on your return could trigger a manual review," according to the H&R Block website, which could delay a refund for weeks.
What is the purpose of Letter 6475 from the IRS?
"The Economic Impact Payment letters include important information that can help people quickly and accurately file their tax return," the IRS said in a January release,
It's the official documentation of your stimulus payments for the entire year of 2021. The letter can help you figure out if you owe additional money through the recovery rebate credit. Even if you don't qualify for further funds, the letter is required to declare stimulus funds on your tax return.
Personal information, such as your name and address, as well as the total amount sent in your third stimulus payment, are included in Letter 6475. This might include "plus-up" payments, which are extra monies provided by the IRS to persons who were qualified for a higher amount based on their 2019 or 2020 tax returns, or information from the Social Security Administration, Department of Veterans' Affairs, or Railroad Retirement Board.
You may have already gotten a Letter 1444-C detailing the amount you were paid and how it was delivered, but this is not what you want to utilize to file your 2021 return.
What should I do if I am unable to find my letter?
If you do not get (or misplace) Letter 6475, you can find information about your stimulus payments on your IRS account. If you don't already have one, you can create an ID.me account on the IRS website to verify your information.
