The COVID-19 pandemic led to various government programs to help American citizens financially, including stimulus checks. While many of these programs have ended, millions can still claim uncollected funds. According to the IRS, over a million Americans are still eligible to receive up to $1,400 through the Recovery Rebate Credit. The best part? It’s not too late to claim this money, but time is running out!
What is the Recovery Rebate Credit?
The Recovery Rebate Credit is essentially the IRS’s way of sending out the last round of stimulus checks. If you didn’t file a federal tax return for 2021, you could still be eligible to receive your stimulus payment. In addition, the IRS has been actively sending out payments to those who qualify, but the final date to claim this money is April 15, 2025.
Who Qualifies for the $1,400 Stimulus Check?
Your eligibility for the $1,400 payment depends on your adjusted gross income (AGI) in 2021, along with other factors like your filing status and dependents. Here’s how it works:
- Single Filers: You can receive the full $1,400 if your AGI was $75,000 or less. This amount phases out completely if your AGI is over $80,000.
- Married Couples Filing Jointly: Couples who filed together and had an AGI of $150,000 or less can receive up to $2,800. The credit phases out if the combined income goes over $160,000.
- Dependents: Dependents, regardless of age, were eligible for $1,400 in 2021. However, the same income limits apply to them.
How Does the IRS Send Out Payments?
The IRS uses the banking information from your 2023 tax return to distribute payments, either through direct deposit or paper checks. This round of payments is the final stimulus check provided during the pandemic. However, if you haven’t filed your 2021 return, you still have the opportunity to claim your payment.
How to Claim Your Stimulus Check: What You Need to Do?
Time is ticking, and to claim your $1,400 payment, you must file your 2021 federal tax return before the April 15, 2025, deadline. The IRS advises that even if you don’t usually file a tax return, it’s important to do so now in order to receive this money.
What if You Missed Filing Your 2021 Tax Return?
If you haven’t filed your 2021 tax return yet, you’re not alone. According to the IRS, over 1.1 million Americans have unclaimed refunds from the 2021 tax year, totaling over $1 billion. The unclaimed funds mainly belong to people who still need to file their Form 1040.
Additionally, many lower- and moderate-income earners might miss out on other tax credits, like the Earned Income Tax Credit (EITC), which was worth up to $6,728 for eligible families in 2021.
What is the Earned Income Tax Credit (EITC)?
The EITC is a tax credit designed to help working families, especially those with low to moderate incomes. The amount varies depending on your filing status and a number of qualifying children. For example:
- If you’re a single filer with no qualifying children, the income threshold is $21,430.
- If you’re a married couple filing jointly, the threshold was $27,380.
- The income limits increased as the number of qualifying children grew.
Many eligible families missed out on this valuable credit in 2021, but it’s not too late to file and receive it.
The IRS Offers Help: How to Get Your Forms and Information
The IRS provides several tools to help individuals file their taxes, including creating an IRS account to access important information like wage and income statements. If you’ve lost important forms from employers or financial institutions, you can request missing forms.
You can also get a wage and income transcript by filing Form 4506-T, which includes information received by the IRS to complete your tax return. However, keep in mind that written requests for transcripts may take several weeks, so it’s better to use faster options if possible.
Why You Should File Now
The deadline for April 15, 2025, is fast approaching, and you must take action now if you think you’re eligible for the Recovery Rebate Credit or the Earned Income Tax Credit. By filing your 2021 tax return, you can ensure you receive any unclaimed stimulus payments or refunds you’re entitled to. With millions of dollars still left unclaimed, make sure you don’t miss out on the support you deserve!
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
Jon King is an experienced journalist with 3 years of experience in the field. With a strong background in investigative reporting, Jon is known for his in-depth coverage of crime news, finance news, local news, and USA news. Currently working with Mikeandjonpodcast, Jon brings his sharp investigative skills, where he provides timely updates and analysis on a wide range of topics. His commitment to delivering accurate and impactful news has earned him a reputation for providing insightful and comprehensive stories that resonate with his audience.
