The COVID-19 Pandemic was a terrible time for all of us. It took us away from our jobs, our friends, and our loved ones, and changed the entire landscape of the world in which we live and how we function. For many, it affected their income and their overall means of living. The American Government worked to help encourage people to stay out and keep spending by introducing the American Recovery Rebate.
What is the American Recovery Rescue Credit Rebate?
The Recovery Rescue credit was a government program that the Biden/Harris administration introduced as a means of helping those who had been negatively affected by the COVID-19 pandemic and had their financial well-being affected. For those dealing with loss of wages and inability to make money during the pandemic, these recovery credits were given out to all citizens in differing amounts.
These were also known as stimulus payments. These payments were meant to have a dual effect, they were meant to help those who were unable to make money or that had their money-making abilities affected during the pandemic. They were there to help those who had to either leave work, were laid off, or were otherwise unable to get money during the pandemic to stay afloat and buy things that they needed.
On the other hand, these payment were also meant to help keep the economy stimulated.
When people are out of the workforce, when they are not making money that they can spend, and when they are limited on where they can go and what they can do, they do not spend money which can leave the economy stagnant. By giving out stimulus payments, the government hoped to help keep the economy moving and going and helped keep the economy stimulated even though many people were not out spending.
These payments were great for those that needed a bit of extra money or that might have been struggling during the pandemic due to the changes that were in place. At the end of the pandemic, the payments did stop. They were only handed out in the year 2020 and 2021 and everyone eligible was able to get the payments that they were entitled to and make sure that they were able to use the money to stay afloat.
The American Rescue Plan
This particular stimulus payment was part of the American Rescue Plan that was enacted as a means of helping the American people and helping the American economy stay afloat even though everything was amiss and the whole world was turned upside down.
The plan offered a range of different payment amounts to each person based on their overall income and if they had dependents. Each person was entitled to $1,400 per person if they made $75,000 each year or less and married couples were entitled to payments of $1,400 per person if they made less than $150,000. For dependents, each dependent, even college students, was able to qualify for the payment as well.
These payments were sent out in three different installments rather than in one lump sum. The amount that your family was entitled to was calculated and then the amount was doled out to citizens in three different payments. These amounts were either distributed directly to bank accounts or they were sent out in paper checks.
These stimulus checks were sent out in the year 2020 and 2021. These funds could be used for anything that the individual needed to use them for, and they were also something that you did not have to pay taxes on in the next tax year. These payments were paired with things like an increased child tax credit on your taxes for those years as well. They were also referred to as Economic Impact Payments.
Can the Credit Still be Collected?
Most of these payments were sent out automatically and the taxpayers did not have to do anything to collect the payment, it was sent directly to them. In some cases, such as taxpayers who might not have paid taxes in a few years or who did not have a direct deposit option, the tax checks were tallied up for them, but you did have to go and apply for the check yourself.
So, what happened to those payments that were not collected? Well, they are still being held for those who did not collect them when they were first distributed. When filing your 2023 taxes, you are going to be able to collect the recovery credit and have those stimulus amounts added to your current tax return.
Since the first year that the credit was applied was in 2020, this means that you have until 2024 to file for the credit and have it applied to your taxes. For the 2021 credit, you have until 2025 to apply for that particular credit. You can also apply for the partial credit. Say that you only got half of the credit or you only got one payment, you can apply for the one that you did not get.
There is no penalty for those who did not get the credit when it was first applied. This means that you can still get the full amount if you apply for it. If you are unsure how to go about filing for this credit, it is always a good idea to talk with a tax expert about what your options are, what you need to have to get the credit, and to figure out how to go about applying for your credits.
If you are struggling or you just want the money that you are entitled to, now is the time to make sure that you are applying for your credit and that you are getting the money that you need. This is a great option for those who might need a bit of extra money or just want to make sure that they are getting their full credit.
The COVID-19 Pandemic was a terrible time for all of us. It took us away from our jobs, our friends, and our loved ones, and changed the entire landscape of the world in which we live and how we function. For many, it affected their income and their overall means of living. The American Government worked to help encourage people to stay out and keep spending by introducing the American Recovery Rebate.
What is the American Recovery Rescue Credit Rebate?
The Recovery Rescue credit was a government program that the Biden/Harris administration introduced as a means of helping those who had been negatively affected by the COVID-19 pandemic and had their financial well-being affected. For those dealing with loss of wages and inability to make money during the pandemic, these recovery credits were given out to all citizens in differing amounts.
These were also known as stimulus payments. These payments were meant to have a dual effect, they were meant to help those who were unable to make money or that had their money-making abilities affected during the pandemic. They were there to help those who had to either leave work, were laid off, or were otherwise unable to get money during the pandemic to stay afloat and buy things that they needed.
On the other hand, these payment were also meant to help keep the economy stimulated.
When people are out of the workforce, when they are not making money that they can spend, and when they are limited on where they can go and what they can do, they do not spend money which can leave the economy stagnant. By giving out stimulus payments, the government hoped to help keep the economy moving and going and helped keep the economy stimulated even though many people were not out spending.
These payments were great for those that needed a bit of extra money or that might have been struggling during the pandemic due to the changes that were in place. At the end of the pandemic, the payments did stop. They were only handed out in the year 2020 and 2021 and everyone eligible was able to get the payments that they were entitled to and make sure that they were able to use the money to stay afloat.
The American Rescue Plan
This particular stimulus payment was part of the American Rescue Plan that was enacted as a means of helping the American people and helping the American economy stay afloat even though everything was amiss and the whole world was turned upside down.
The plan offered a range of different payment amounts to each person based on their overall income and if they had dependents. Each person was entitled to $1,400 per person if they made $75,000 each year or less and married couples were entitled to payments of $1,400 per person if they made less than $150,000. For dependents, each dependent, even college students, was able to qualify for the payment as well.
These payments were sent out in three different installments rather than in one lump sum. The amount that your family was entitled to was calculated and then the amount was doled out to citizens in three different payments. These amounts were either distributed directly to bank accounts or they were sent out in paper checks.
These stimulus checks were sent out in the year 2020 and 2021. These funds could be used for anything that the individual needed to use them for, and they were also something that you did not have to pay taxes on in the next tax year. These payments were paired with things like an increased child tax credit on your taxes for those years as well. They were also referred to as Economic Impact Payments.
Can the Credit Still be Collected?
Most of these payments were sent out automatically and the taxpayers did not have to do anything to collect the payment, it was sent directly to them. In some cases, such as taxpayers who might not have paid taxes in a few years or who did not have a direct deposit option, the tax checks were tallied up for them, but you did have to go and apply for the check yourself.
So, what happened to those payments that were not collected? Well, they are still being held for those who did not collect them when they were first distributed. When filing your 2023 taxes, you are going to be able to collect the recovery credit and have those stimulus amounts added to your current tax return.
Since the first year that the credit was applied was in 2020, this means that you have until 2024 to file for the credit and have it applied to your taxes. For the 2021 credit, you have until 2025 to apply for that particular credit. You can also apply for the partial credit. Say that you only got half of the credit or you only got one payment, you can apply for the one that you did not get.
There is no penalty for those who did not get the credit when it was first applied. This means that you can still get the full amount if you apply for it. If you are unsure how to go about filing for this credit, it is always a good idea to talk with a tax expert about what your options are, what you need to have to get the credit, and to figure out how to go about applying for your credits.
If you are struggling or you just want the money that you are entitled to, now is the time to make sure that you are applying for your credit and that you are getting the money that you need. This is a great option for those who might need a bit of extra money or just want to make sure that they are getting their full credit.
){kind=link}