The IRS has recently announced penalties for fraudulent claims on the $1,400 Recovery Rebate credit. With the 2024 filing season soon coming to an end, the IRS has been urging taxpayers to file their 2021 taxes to receive unclaimed Economic Impact Payments (EIP). However, if you are one of the many filers who have already filed and received this payment and attempt to do so again, the IRS has warned that there will be serious penalties if you are caught trying to receive a second payment.
IRS released unclaimed stimulus checks for one million taxpayers
This tax season, taxpayers still have the opportunity to claim one of the three Economic Impact Payments (EIPs) released during the COVID-19 pandemic. Between March 2020 and March 2021, the federal government released three EIPs to eligible beneficiaries. This was in response to both the mass job loss seen across the nation as well as the increase in cost-of-living.
For all tax credits, taxpayers have up to three years to claim an unclaimed credit. This means that this tax season is the final one where you can claim the third EIP amounting to $1,400 per filer. Approximately one million eligible filers had not claimed this payment despite qualifying to receive it. Those who filed their 2021 taxes but did not claim the credit had this payment sent to them by the end of January of this year.
However, the IRS is encouraging those who did not file their 2021 income taxes to file before the April 15 deadline. This is because you may be eligible to receive the $1,400 stimulus payment; however, if you never filed your 2021 taxes, the IRS will not be able to automatically process the credit for you. Even if you do not earn a high enough income to pay income tax, you must still file your taxes for the IRS to release the payment.
IRS warns taxpayers of penalties for fraudulent behavior
The IRS official policy on $1,400 checks eligibility describes how eligible beneficiaries can receive $1,400 per filer as well as an additional $1,400 for each child and qualified dependent. To qualify to receive the rebate, you needed to have a total adjusted gross income of $75,000 for single filers, while married couples filing jointly must have earned an adjusted gross income of less than $150,000.
Most beneficiaries have already claimed this credit at this point, according to the IRS. The IRS has warned that their system will reject your claim outright if you try to claim the payment a second time when you have already received it. However, in the case that a fraudulent claim is processed, you will need to repay the credit with additional penalties and interest.
Claim a $500 tax credit from the Internal Revenue Service
With the tax season coming to an end soon, the $1,400 Recovery Rebate credit is not the only tax credit you can apply for. Many families will be claiming the Child Tax Credit and Additional Child Tax Credit as well as the Earned Income Tax Credit. These credits are some of the most claimed credits each year and are designed to reduce the tax liability of families with children and low-income families.
However, if you were not approved for the Child Tax Credit, you can still claim the $500 Other Dependents Credit. This credit is for those individuals who meet the income criteria for the Child Tax Credit and have a dependent who relies on them, but do not meet the criteria to receive the Child Tax Credit, as the dependent is not their child. To reduce your tax liability this season, check to see if you meet the qualifying criteria for these additional tax rebates by using the resources on the IRS website.
