The U.S. Treasury has begun distributing $2.4 billion in stimulus checks to eligible taxpayers, offering much-needed financial relief. If you have not claimed the Recovery Rebate Credit on your 2021 tax return, you might be among those receiving a payment. Let us break down what you need to know about these payments, including eligibility, how to check if you are getting a refund, and what steps you can take if you missed filing your 2021 taxes.
Who is eligible for the stimulus payment?
The Treasury and IRS have made a pronouncement: these payments are for taxpayers who filed their 2021 tax returns without claiming the Recovery Rebate Credit. This credit is also available to taxpayers who were eligible for but did not receive one or more Economic Impact Payments (EIPs), also referred to as stimulus payments.
Here is what determines eligibility:
- You did not receive the full amount of previous stimulus payments (EIPs).
- You filed a 2021 tax return and left the Recovery Rebate Credit field blank or entered $0.
The IRS has also stated that they reviewed their data and found that around one million eligible taxpayers overlooked claiming this credit.
How much will eligible taxpayers receive?
The monetary sum you would be able to get will depend on your circumstances and eligibility. According to the IRS, the maximum payment per taxpayer is $1,400.
However, not all taxpayers are entitled to receive such a payment. Factors such as your income level and filing status in 2021 could determine the amount you can receive.
How will you receive the stimulus payment?
If you meet these criteria, you do not have to do anything to get your money. The IRS is making it so as to facilitate taxpayers and spare them the need to file amended returns. The payment will be sent via:
- Direct deposit to the bank account indicated on your 2021 tax return.
- Actual paper checks, if there was no information provided about your bank account.
Expect your payment, as all eligible refunds will arrive before the end of January 2025.
Read more: Bad news for 2025 – These are the people who are ineligible for the $1,400 IRS stimulus check
How can you find out if you are getting a refund?
There are a couple of ways to check if you are getting a stimulus payment:
- Look for a Notification Letter: The IRS is sending out separate letters to inform eligible taxpayers about their payments.
- Review Your 2021 Tax Return: If you left the Recovery Rebate Credit field blank or filled it out as $0, you could be eligible.
- Use IRS Online Tools: You can log in to the IRS website and check your tax account for updates on payments.
What if you did not file a 2021 tax return?
You are eligible for your Recovery Rebate Credit if you did not file for your tax returns for 2021. If you are eligible and did not get a chance to receive this payment, you have until April 15, 2025, to claim it. Here’s what you will have to do:
- File a tax return for the year 2021 even if your earnings do not meet the threshold or you have no income at all.
- Attach Recovery Rebate Credit as part of your return to ensure that you receive your payment.
It may also prevent you from losing this opportunity by filing now.
Continue reading:
Could you still be eligible for a $1,400 stimulus check – How to apply and when is the deadline
