AMERICAN RESCUE PLAN BOOST REFUNDS
February 25, 2022 - Douglas Myser
American rescue plan boost refunds. IRS urges Americans to file, even if they haven't for years. The Internal Revenue Service urged Americans to file a 2021 federal income tax return so they can take advantage of key tax benefits in the American Rescue Plan and other legislation recently passed by Congress. Individuals and families can get these expanded tax benefits, even if they have little or no income from a job, business or other source. This means that many people who don't normally need to file a return should consider doing so this year. Because claiming these benefits could result in tax refunds for many people, individuals should file an accurate return electronically and choose direct deposit to avoid processing delays and speed delivery of their refund. American rescue plan boost refunds.
The expanded tax benefits are only available to people who file a 2021 federal income tax return Some of the benefits include: An expanded Child Tax Credit: Families can claim this credit, even if they received monthly advance payments during the last half of 2021. An Increased child and dependent care credit: families who pay for daycare so they can work or look for work can get a tax credit worth up to $4000 for on qualifying person and $8000 for two or more qualifying persons. A more generous Earned Income Tax Credit: The American Rescue Plan boosted the EITC for childless workers. There are also changes that can help low and moderate income families with children.
The Recovery Rebate Credit" Those who missed out on last year's round of Economic Impact Payments, also known as stimulus payments, may be eligible to claim the RRC. This credit can also help eligible people whose EIP3 was less than the full amount. If you have questions about any of this, you will find additional information is available at the IRS Website, located at IRS.GOV