The Internal Revenue Service (IRS) has announced that April 15, 2025, is the final date for eligible taxpayers to request the Recovery Refund Credit. This credit can provide up to $1,400 per person for those who did not receive the third stimulus payment during the pandemic. This is a crucial opportunity for those who missed out on the Economic Impact Payments (EIPs) but are still eligible for compensation.
What Is the Recovery Refund Credit?
The Recovery Refund Credit is a benefit designed for individuals who did not get the third round of stimulus checks, which were sent out in March 2021. Unlike the first two stimulus payments (sent in March and December 2020), this credit is only available for those filing their 2021 tax returns.
If you didn’t receive the full payment or missed it altogether, this is your chance to claim it. The credit is meant to compensate those who met the eligibility requirements but didn’t receive the payment when it was initially distributed.
Who Can Apply for the $1,400 Credit?
If you missed the third stimulus payment in 2021, you may be eligible to claim the Recovery Refund Credit. Even if you had little to no income in 2021, you can still apply for the credit as long as you file your tax return by the April 15, 2025 deadline. It is important to note that this credit only applies to the 2021 return, so information about the previous stimulus payments should not be included on recent forms.
The maximum amount of $1,400 will be granted to individuals with an income under $75,000 and couples filing jointly with an income under $150,000. The IRS advises that you check your eligibility by reviewing the relevant line on your 2021 return or by checking the EIPs received through their online platform.
How to Claim the Stimulus Check
If you have not yet filed your 2021 tax return, you must submit it before the April 15, 2025 deadline, even if you had no tax obligations that year. The exact amount you can claim will depend on your Adjusted Gross Income (AGI). If you have already filed your 2021 tax return but forgot to claim the credit, don’t worry— the IRS will send the payment automatically.
You can expect payments to be made via direct deposit or physical check, and you will receive a notification by mail. The IRS has confirmed that if you have already filed and claimed the credit, you don’t need to take any further action. However, it’s a good idea to double-check your online IRS records to confirm the amount you are entitled to and ensure there are no duplicate claims.
What Happens if You Miss the Deadline?
Unfortunately, the deadline for claiming the Recovery Refund Credit is firm. The IRS has stated that retroactive claims will not be accepted after April 15, 2025. If you missed the credit in 2021, you must file an amendment to your tax return before the deadline. Tax experts recommend reviewing all of your past returns and comparing them with the Economic Impact Payments you received. If you notice any discrepancies, you should submit an amendment right away.
Why Are So Many Stimulus Checks Unclaimed?
According to the IRS, about 12% of eligible taxpayers missed claiming their third stimulus check in 2021. This may have been due to confusion or errors when filling out forms. The IRS has set up assistance channels to help taxpayers with the process, but they have warned that the deadline will not be extended. After April 15, 2025, no further claims will be accepted, so it’s essential to act now if you’re eligible.
Are These Funds Taxable?
The Recovery Refund Credit is not subject to federal taxes. However, some states may consider the payment as income and may require you to report it on your next state tax return. It’s important to check with your local tax authority to confirm whether or not you need to report the funds in your state.
The Recovery Refund Credit is a vital opportunity for those who missed the third stimulus check to receive up to $1,400 in compensation. If you meet the eligibility requirements, be sure to file your tax return before the April 15, 2025 deadline.
Take action now to ensure you don’t miss out on this financial support, and remember to check your state tax laws to confirm how the payment is treated in your area. Time is running out, so make sure to review your past returns and avoid missing out on this valuable credit.
