As April 2025 dawns, the speculation has been rife about a possible direct deposit payment of $4,983. This article will therefore attempt to clear up what this payment really is, criteria to be eligible for it, and how to confirm claim status.
Clarification of the $4,983 Payment
The Internal Revenue Service (IRS) has said that over 1.1 million taxpayers have unclaimed refunds from the 2021 tax year, totaling more than $1 billion.
The mean refund amount is somewhere around $781-certain individuals would qualify for considerably more depending on their personal tax situation.
Although $4,983 is an a typical refund amount, some taxpayers will receive refunds in that size-or even a little more or a little less-than by looking at their income and tax withholdings, as well as credits claimed, in the 2021 tax year.
Possible Sources of Payment
There are a few sources of a refund near $4,983:
EITC:
The Earned Income Tax Credit is geared for low-to-modest income workers but has a great deal of promise when it comes to increasing refund amounts. For the tax year 2021, “super stars” with three or more qualifying children can receive EITC grants up to $7,830.
Recovery Rebate Credit:
This amounts to an additional $1,400 for each person on the tax return for people who did not benefit from previous stimulus payments.
Tax Credit for Children:
Families who received no advance payments during the year 2021 might qualify for the Child Tax Credit and further increase the refund amount.
Eligibility Criteria
To establish eligibility for its respective credits and possible refunds:
- Income Criteria: The variance of AGI limits for the EITC based upon the filing status and the number of qualifying children. In 2021, for instance, to file as a single person with three children, an AGI of less than $50,594 was required for eligibility.
- Filing Needs: The eligibility of single taxpayers, married couples filing jointly, and heads of households.
- Dependents: The number of qualifying children or dependents in and of themselves could have a direct bearing on the amount of credit received.
Unclaimed Refunds for the 2021 Tax Year.
There are steps to follow:
- File a 2021 Tax Return: An individual must file a return to claim refunds and credits even though they are not usually required to file.
- Deadline: The deadline set by the IRS is April 15, 2025, to file a 2021 tax return and claim the refund.
- Required Documentation: All documentation needed. W-2s, 1099s, and records of advance Child Tax Credit payments, should be collected.
Claim Status Check
To check the status of your refund :
- IRS Online Tools: Use the feature “Where’s My Refund?” located at the IRS website to check refund status.
- IRS2Go App: Download the mobile IRS2Go application for a quick and easy query on refund information.
- Call the IRS: Finally, you may contact the IRS with your specific inquiry by calling their toll-free number.
Even though the $4,983 direct deposit isn’t a standard figure, eligible taxpayers can receive a big refund by obtaining credits and unclaimed funds from the 2021 tax year.
It is important to file the necessary tax returns by the April 15, 2025, deadline to secure any owed refunds.
FAQS:
What’s the last date for claiming my refund for the year 2021?
The last date to file for 2021 taxes and claim any refunds you may not have claimed is April 15, 2025.
Where can I check my eligibility for the Earned Income Tax Credit?
Being eligible for EITC relies on income, filing status, and the number of qualifying children. You can use the EITC Assistant available on the IRS website to help you determine if you are eligible or not.
What should I do if I have not received my previous stimulus payments?
Taxpayers due certain stimulus payments may file for the Recovery Rebate Credit on the 2021 tax return, regardless of whether they are filing taxes, to credit their missing payments.