With the deadlines for claiming missed COVID-19 stimulus payments here, millions risk losing out on thousands of dollars in vital financial relief. Referred to colloquially as stimulus checks, EIP was a catch-all term created to describe the money specifically allotted in support of Americans through the pandemic economic shutdown. Below is an overview of some key facts about the payments, who qualified, and how to apply for those who never received them before it’s too late.
Overview of Economic Impact Payments (EIP)
The United States government issued three rounds of Economic Impact Payments to provide financial support during the COVID-19 pandemic. These were provided under the following:
- CARES Act, March 2020: The awarding of up to $1,200 per head and up to $500 for each qualifying child.
- COVID-related Tax Relief Act, December 2020: A per head additional amount of $600 with $600 to the qualified child.
- American Rescue Plan Act, March 2021: Delivery of up to $1,400 per individual, 2,800 dollars for married couples filing jointly, including $1,400 for each dependent.
These were meant to lighten the load on families and increase spending in the economy during these dire times of the outbreak.
Eligibility criteria for claiming payments
To be eligible for these stimulus checks, certain criteria are required:
- U.S. citizenship or residency: You must be a U.S citizen or a resident alien. Dependent Status: You cannot be claimed as a dependent on someone else’s tax return.
- Social Security Number: A valid Social Security number must have been issued before the due date of the tax return.
- Income limits: The full amount of EIPs was allowed to individuals with an adjusted gross income below certain thresholds for:
- $75,000 for single filers
- $112,500 for heads of household
- $150,000 for married couples filing jointly
For those with an AGI above these limits, the payments will be reduced, and completely phased out at higher income levels.
Claiming missing payments
If you missed one or more of your stimulus payments, or got less than you were supposed to get, you can still claim missing money via the Recovery Rebate Credit on your tax return. Here’s how you should proceed:
- Calculate your arrears: Go through your records and determine how much you received against what you should have received. The IRS, on its part, has issued notices in the form of Notices 1444 and Letter 6475 to explain how much was sent your way.
- File your tax returns: If you have missed the first and second payments, then file your 2020 tax return. If you have missed the third payment, file your 2021 tax return.
- Use the Recovery Rebate Credit: Include the Recovery Rebate Credit on your tax return to claim any amount of the stimulus payments that was not received. This credit either increases your refund or decreases your tax due.
Important deadlines
Two key deadlines come into play regarding filing tax returns and claiming any missing stimulus payments:
- May 17, 2024: Final deadline to file your 2020 tax return and claim the Recovery Rebate Credit for the first two stimulus payments.
- April 15, 2025: You must file your tax return for 2021 and claim the third stimulus payment.
Missing either of those deadlines means one thing: you will have lost your chance to claim these funds forever.
What to do so that you don’t miss out
So that you don’t miss out on unreceived stimulus money:
- Check your IRS online account: If you have registered online or signed in to your account on IRS.gov, check your payment history to see the amount you received. Gather all necessary documentation like W-2s, 1099s, and any notices received from the IRS with regard to Economic Impact Payments.
- Seek professional help: If you are not sure how to proceed or need help with filing the past returns, consider contacting a tax professional who can guide you through the process.
Missed consequences
Not claiming your eligible Economic Impact Payments can have long-lasting impacts on your financial situation. These were structured to be one of those lifelines during never-seen times; thus, losing that means losing critical support that could help with such expenses as rent, groceries, or medical bills.
Read more: Are medical bills tax deductible and what is the condition to make it on IRS Tax Return?
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