The Internal Revenue Service (IRS) has announced a special measure to issue automatic payments later this month to eligible individuals who did not claim the recovery rebate credit on their 2021 tax returns.
This effort aims to ensure that all taxpayers receive the stimulus payments they were entitled to but may have missed.
The IRS made this decision after reviewing internal data that revealed many eligible taxpayers had filed a tax return but did not claim the credit.
Table of Contents
rebate credit
The recovery rebate credit is a refundable tax credit for individuals who did not receive one or more of the economic impact payments, commonly referred to as stimulus payments.
Eligible taxpayers will receive their payments either through direct deposit or as a paper check in the mail. The IRS will also send a separate letter confirming the payment.
The maximum payment amount is 1,400 dollars per person, with the total payout estimated to reach 2.4 billion dollars.
Deadline
For taxpayers who have not yet filed their 2021 tax return, the IRS deadline is April 15, 2025. Filing before this date allows eligible individuals to claim both the recovery rebate credit and any other refund they may be owed.
Who qualifies?
To qualify for the 2021 recovery rebate credit, you must meet the following requirements:
- Be a legal U.S. resident.
- You or a dependent you claim must have a valid social security number or adoption taxpayer identification number issued by the IRS.
- Cannot be claimed as a dependent on another taxpayer’s 2021 tax return.
The IRS encourages those who did not file a 2021 tax return to do so as soon as possible to claim their stimulus payment. Even if an individual had minimal or no income, they may still qualify for a refund by filing a return.
By taking action before the deadline, eligible taxpayers can ensure they receive the funds they are entitled to.
FAQs
What is the recovery rebate credit?
It is a refundable tax credit for those who missed stimulus payments.
How much is the stimulus payment?
The maximum payment is 1,400 dollars per eligible person.
When is the deadline to claim the credit?
Taxpayers must file their 2021 return by April 15, 2025.
Who qualifies for the recovery rebate credit?
Legal U.S. residents with a valid SSN or ATIN who were not claimed as dependents.
How will I receive my stimulus payment?
Payments will be sent via direct deposit or mailed as a paper check.
