There’s less than a month left for American taxpayers to claim a tax credit and stimulus check from years ago, and they may not even be aware they have money due to them. On January 27, the United States tax season 2025 opened, and the IRS started accepting Americans’ income tax returns. This period is almost over, and this is the last chance to claim this credit from 2021 to the value of $1,400. If you have no taxes due, this entire amount will be refunded, and anyone who is eligible but neglects to claim it will miss out.
The IRS says you have until April 15 to claim a refund
In 2021, the United States government and the Internal Revenue Service made a credit available during the COVID-19 pandemic to assist taxpayers in relieving the financial strain caused by lockdowns and related strain on the economy. Millions of American citizens appreciated the funds at a time when keeping up with living costs such as housing and healthcare was more difficult than usual.
Hundreds of thousands of people who were eligible for Economic Impact Payments didn’t claim them, according to the Internal Revenue Service. The agency reviewed its internal data and discovered that qualifying people who could have claimed this credit from 2021 didn’t fill out the relevant portion of their tax return, and they will lose it if they don’t claim soon.
According to IRS Commissioner Danny Werfel:
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
Eligibility criteria for the Recovery Rebate Credit in 2021
A third Stimulus Check was issued in March 2021 under the American Rescue Plan, and these were the eligibility criteria:
- An income threshold of $75,000 for individual taxpayers was applied to qualify for the full Recovery Rebate Credit in 2021, which was $1,400. An earnings scale was applied to taxpayers’ income in the fiscal year, and those who earned more received a smaller credit depending on how much more they earned above the threshold.
- Couples who filed their taxes jointly had a threshold of $150,000 to qualify for the full amount. The same earnings scale was applied for those who earned above this amount per year.
Taxpayers who neglected to file an income tax return for 2021 could still qualify for the Stimulus Check. They have this opportunity to submit their 2021 return before April 15, 2025, and claim the Recovery Rebate Credit. The IRS says:
“Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent.”
Frequently asked questions about claiming the 2021 Recovery Rebate Credit
- What do I do if I never filed a tax return for 2021 at all?
File your 2021 tax return now, even if you have no tax liability, and fill in the Recovery Rebate Credit section.
- How do I follow up once I have submitted my tax return and claimed the Recovery Rebate Credit?
The Internal Revenue Service has a tool on the website called “Where’s My Refund?” that taxpayers can utilize to check their rebate claim process.
- When can I expect to be paid after claiming the RRC?
Payments started being processed in December 2024 and all recipents who qualified should have been paid within three weeks of correctly submitting their tax return.
Aside from this credit, you may also be eligible for the Child Tax Credit, which is due to taxpayers with children who qualify.