Over 9 Million Families Still Eligible For Tax Benefits

The IRS sent notices to more than nine million individual taxpayers and families who could qualify for a number of tax benefits, but who failed to claim them because they didn’t file a 2021 return. If you received a special notice, consider reaching out to an experienced tax lawyer for help claiming a variety of tax benefits.

Valuable Tax Credits

Many taxpayers who failed to file their tax returns last year may have missed out on the chance to claim valuable credits, like the:

• Child Tax Credit (CTC), which could entitle recipients to as much as $3,600 per child and is available to those who received advance payments in 2021;
• The Recovery Rebate Credit (RRC), which is available to individuals who didn’t receive last year’s third round of stimulus payments and could be worth as much as $1,400 for each qualifying adult and another $1,400 for each eligible dependent; and
• The Earned Income Tax Credit (EITC), which could be worth as much as $1,502 for employees with no children, $3,618 for families with one child, $5,980 for those with two children, and $6,728 for individuals with at least three children.

Besides these credits, many filers could also qualify for the Child and Dependent Care Credit, which assists parents who pay for daycare, as well as a deduction for charitable gifts. The letter will give recipients a brief overview of these credits and any other credits for which taxpayers may qualify. Even individuals and families who aren’t required to file a tax return could qualify, so it’s important for those who receive these notices to reach out to a tax lawyer for advice regarding their next steps.

Claiming Credits

All of the credits we mentioned previously were expanded under the American Rescue Plan Act and other recent legislation. However, the only way to claim these benefits is to file a 2021 tax return, so even individuals who aren’t normally required to file a tax return, should strongly consider doing so this year. For instance, individuals and families can qualify for these expanded tax benefits even if they have little or no income. It’s also important to note that people can file a tax return and claim these valuable benefits, regardless of whether they have actually received a notice from the IRS.

Important Reminders for Filing

Those who receive a notice from the IRS, or who believe that they might qualify for the credits we mentioned should be sure to have certain documents on hand, including:

• Their year-end 2021 tax statements;
• All necessary W-2 and 1099 forms;
• Letter 6419, which shows total advance Child Tax Credit payments; and
• Letter 6475, which shows total stimulus payments.

Feel free to reach out to our legal team today to learn more about the documents you might need to file your own 2021 return.

Here to Answer Your Tax-Related Questions and Concerns

With over 50 years of experience handling a wide range of tax matters, CPA, former Special Agent for the FBI, and skilled tax return preparation lawyer Ronald Cutler, P.A. is uniquely equipped to help taxpayers with questions about the tax benefits for which they might qualify. To learn more, call us at 386-490-9949 and set up a free, one-on-one consultation today.

Sources:

irs.gov/newsroom/irs-sending-letters-to-over-9-million-potentially-eligible-families-who-did-not-claim-stimulus-payments-eitc-child-tax-credit-and-other-benefits-free-file-to-stay-open-until-nov-17

irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-for-other-dependents