(DailyDig.com) – The IRS has sent approximately $1,232 in refunds to millions of Americans due to the American Rescue Act. This new law adjusts approximately 14 million tax returns and provides a much-needed financial boost for those who qualify. The refund amount may vary depending on your income level and other factors.
Why is the IRS Offering the Refund?
The American Rescue Act refund is a one-time payment meant to stimulate the economy and help lower-income individuals and families make ends meet during this difficult time. While the refund amount is fixed, $1,232, it goes a long way in helping those struggling to pay bills and buy food. For some, this could be the difference between being able to keep up with payments or defaulting on loans.
The goal of the American Rescue Act is for individuals and families to use this money for necessities, such as groceries, rent or mortgage payments, utilities, and health care expenses. The hope is that by providing temporary relief to those who need it most, the economy will recover more quickly.
The refund will also help offset unpaid tax debt and reduce financial burdens for taxpayers. It is a much-needed lifeline for millions of struggling Americans.
What Do You Need to Qualify for the Refund?
The IRS has set certain criteria to qualify for the American Rescue Act refund. You must have been a US resident during 2020 and filed your returns before July 15th, 2021. Taxpayers with income below $72,000 in 2020 could be eligible for a full payment of $1,232 or more; those with income above this threshold could qualify for a partially reduced refund. Additionally, those who filed their taxes jointly with another individual and had an income below $150,000 could receive up to $2,464 in refunds.
Other Criteria
Aside from the income requirements, other eligibility criteria must be met to qualify for the American Rescue Act refund. For instance, the IRS looks at factors such as filing status, the number of dependents claimed on your tax return and the income earned between January 1st, 2020, and April 15th, 2021. Additionally, refunds will only be issued to those who have yet to receive their 2021 tax refund.
How to Claim Your Refund
If you meet the eligibility criteria for the American Rescue Act refund and have yet to receive your payment from the IRS, you should take action now. You can check your status by visiting the IRS website and using their “Get My Payment” tool. This tool will allow you to check your eligibility, enter bank account information for direct deposit, and track when the payment has been processed. Alternatively, you can call your tax professional or contact the IRS directly for further assistance.
The IRS has stated that payments will be sent out until the end of January 2023, so feel free to look into your eligibility immediately. Remember, this refund may provide a much-needed financial boost during these difficult times and should not be missed out on!
What Happens if I Don’t Qualify?
If you don’t meet the American Rescue Act refund eligibility criteria, other options are still available. Depending on your financial situation and particular needs, you can take advantage of a tax credit or payment plan that can help reduce your overall tax burden.
If your AGI falls outside the specified range or you don’t meet other criteria, you won’t qualify for the refund this time. However, you should contact the IRS or a tax professional for further advice on how to lower your overall tax burden.
The American Rescue Act refund provides a much-needed financial boost to millions of Americans, but not everyone may qualify. It’s important to check your eligibility and take advantage of any other options if you still need to meet the criteria for the refund. Doing so can help you reduce your overall tax burden and provide greater financial security in these uncertain times.
By being mindful of your eligibility and exploring other options, you can ensure that you receive the maximum benefit. Now is the time to act quickly and ensure you take advantage of this valuable opportunity.
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