If you didn't file a tax return for 2021, it might be worth doing so — you could be leaving money on the table.
The Internal Revenue Service has been sending out Covid-19 stimulus check money worth as much as $1,400 to around 1 million tax filers who didn't receive them. Since the credit was originally self-claimed, the IRS is now automatically sending these payments to ensure eligible taxpayers get what they're owed.
Called the Recovery Rebate Credit, the tax provision helps people claim missed stimulus payments from 2021. If you were eligible but didn't receive the funds, you can still claim it. But there's a catch: You must file a tax return by April 15, 2025.
Payments will be automatically deposited using the banking information listed on the taxpayer's 2023 tax return or sent by paper check.
How the credit works
The stimulus check, part of the American Rescue Plan Act of 2021, was the final payment issued to provide financial relief during the Covid-19 pandemic.
It provides up to $1,400 per person, with the exact amount dependent on adjusted gross income and phased out at higher income levels:
- Single filers: You qualify for the full $1,400 if your AGI in 2021 was $75,000 or less. The credit begins to decrease for incomes over $75,000 and is fully phased out at $80,000.
- Married filing jointly: You qualify for the full $2,800 (for two people) if your combined AGI in 2021 was $150,000 or less. The credit begins to decrease for combined incomes over $150,000 and is fully phased out at $160,000.
- Dependents: Families can receive $1,400 for each dependent in 2021, regardless of age, but the amount is subject to the same income phaseout limits as the primary filer.
Originally announced in December, the IRS has been automatically sending payments to taxpayers who qualify, including those who filed tax returns with blank or $0 entries for the Recovery Rebate Credit data field, but were still eligible for the credit.
That leaves eligible people who haven't filed a tax return yet. April 15th is the last day to claim the credit, as, generally, the IRS only allows you to file for refunds or credits within three years.
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