Despite repeated reminders by the IRS, around 1.5 million taxpayers still need to collect their 2018 stimulus checks. And with the deadline looming on July 17, there is less than a week before a sum of $1.5 billion could go back for good to the government treasury.
Many Americans have not applied to claim their 2019 stimulus check. And all they have to do is file their income tax return for 2019 which was to have been submitted by the first quarter end of 2020. That was the exact period when the COVID-19 pandemic first struck the heart of America and decimated the economy there.
The median amount owed comes to $893. The inflation was an extra burden for low and moderate-income Americans still struggling to recover from the financial setback of the pandemic. The abrupt and relentless rise in prices has continued for over a year and a half. It has led to prices of food, groceries, rent, and utilities rising almost double that of pre-pandemic levels.
This has meant that most workers who have received a generous increase in wages have still reported a negative increase. It has been due to record inflation that has broken decades-old records. At this stage of the economy, an amount of anything between one and several thousand dollars could be a boon for most Americans, especially in the low and moderate-income categories.
Circumstances Leading To Missing Out On Federal Stimulus Check
People might wonder how could it be possible for either the federal administration or the beneficiary to miss out on the stimulus checks. It is important to remember that the 2019 income tax return was due in 2020, right when the pandemic hit America hard, sending the nation into a total shutdown mode.
People were locked in their homes for prolonged periods. But the federal administration compensated for the trouble by giving people additional time to get their papers together and file their returns. It is important that you go back and sift through your records and make sure that you have not missed out on any year. It could easily have happened in the chaos that reigned at that period. If you are owed a 2019 stimulus check, but you did not pay taxes in 2020 and 2021 too, then this tax will be absorbed into any tax that you still owe.
Looking For An Outstanding Stimulus Check
Unfiled tax returns are the main reason behind the nearly $1.5 billion that is lying in the accounts of the federal government. With days to go for the final date of filing the extended tax returns, the IRS has been constantly reminding millions of people across the US to submit their tax returns and claim their refunds for the 2019 income tax year. The IRS estimates that there are over 1.5 Americans who missed out on filing the stimulus checks that year.
The deadline is exactly a week away on July 17, 2023. Under the law, taxpayers typically get 3 years to file and claim their income tax refund stimulus checks. And if they fail to do so within the stipulated period, any money that is owed to the taxpayer by the IRS automatically becomes the property of the US Treasury.
The average median fund was $893 for 2018, the tax agency revealed. Danny Werfel, the IRS commissioner, said that time was running out fast for over a million people to get their 2019 income tax refunds. Despite the delay caused by the pandemic, the IRS revealed that it has no plans t further extend the date for filing the returns. People who did not file the returns should not miss out on this last chance to receive their refund.
Taxpayers Could Lose More That Their Refund Stimulus Check
There are many low to moderate-income earners who could be in line for the Earned Income Credit Tax. The EITC was worth as much as $6,557 in 2019, the premier tax agency announced. The EITC also helps families and individuals whose incomes are below a certain threshold in 2019.
The Earned Income Tax Credit is given to filers who have the following income levels. Those who had income below $50,162 in 2019 and have at least three children and married. For married couples, the amount is $55,952. For families and individual parents with two children, tee corresponding amounts are $46,703 and $52,493.
For those with one qualifying child, the amount for individual filers is $41,094 and $46,884 for married couples filing jointly. For people without any qualifying children, the maximum income for which EITC is allowable is $15,570 and $21,370.
The IRS also added that individuals who are seeking tax refunds for 2019 may have their stimulus checks held if they have not filed tax returns for both 2020 and 2021. The refund will also be applied to the amount that is still owed to the IRS or a state tax agency. It could also be used to offset unpaid child support or settle previous federal debts. This includes student loans.
Getting Documents To File The Income Tax Returns For 2019
The IRS has listed several ways by which people can still get the information they need to file for 2019. Filers who do not have the W-2, 1098, 1099, or 5498 for 2019 to 2021 can apply for copies from their employer, bank, or other payers.
If filers are unable to obtain such missing forms from employers and other payers, they can order free wager and income transcripts from the tax agency’s website, IRS.gov using the Get Transcript Online tool.
A second option is for filers to file Form 4506-T (Request for Transcript of Tax Return) with the IRS and request a transcript for wage and income. This wage and income transcript reveals data based on the information that the IRS receives. They include Form W-2. 1098, 1099, Form 5498, and IRA contribution information.