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Could it be borrowing some of the billions of unpaid stimulus funds?

Key Point

  • The American Rescue Plan Act provided stimulus money to help households cope with the pandemic.
  • Stimulus packages included expanding child tax credits for parents.
  • A new report reveals that up to 4.1 million households did not receive stimulus funds from expanded credits.

Stimulus packages have been a lifeline for individuals and families during the COVID-19 pandemic. However, not all the money you should have been entitled to was deposited into your bank account.

In fact, a new report from the Treasury Department’s Tax Commissioner reveals that the IRS has failed to make significant financial relief payments to 4.1 million households. Outstanding stimulus funds total about $3.7 billion, and some eligible families may be able to claim this money.

Here’s what you should know:

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Auditor’s report says IRS failed to transfer billions of dollars

An audit conducted by the Treasury Department’s Tax Commissioner revealed that the IRS had failed to deliver a key form of stimulus approved by the US Relief Plans Act. Specifically, the IRS missed approximately 4.1 million payments under the expanded child tax credit that the COVID-19 Relief Act authorized.

The American Rescue Plan Act changed existing child tax credits worth up to $2,000 per child (of which only $1,400 was refundable). 17. A full refund and half of the credit payment was made in the form of monthly deposits of $250 or $300 made between July 2021 and he December.

The Treasury Inspector General found that the IRS properly distributed 98% of the money, while the remaining 2% was huge. Approximately 4.1 million eligible households did not receive the amount they should have, and the outstanding amount totaled him $3.7 billion. Unfortunately, at the same time, he misdirected over $1.1 billion to her 1.5 million taxpayers who weren’t actually eligible for the deduction.

The IRS has indicated it has taken several steps to correct this, including preventing further payments to taxpayers who are not actually eligible for the deduction. However, former IRS commissioner John Koskinen indicated on a panel at the Bipartisan Policy Center that some eligible individuals have yet to receive the money.

do you owe some of this money?

If you have children and do not receive the extended child tax credit, you may be one of the individuals eligible for outstanding stimulus funds from the IRS.

To find out if you missed out, first determine if you had to qualify based on your income. If her adjusted adjusted gross income is less than $75,000 as a single filer or less than $150,000 as a married joint filer, she should be eligible for the full deduction. If your income was up to $200,000 as a single filer or $400,000 as a married joint filer, you should be eligible for a partial deduction.

Even if your income isn’t great and you have eligible children, you may still be able to claim the deduction by filing your 2021 tax return. If you request an extension, she must file her 2021 return by October 17, 2022. Also, even if you haven’t applied for an extension, you can still submit the form without penalty for late submission if you have no tax liability.

You don’t want to miss out on this money, so if you have some of the billions of dollars of unpaid child tax credit money in your bank account, take action today.

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