IRS stimulus check update: Deadline, eligibility, and how to claim your refund

IRS stimulus check update: Washington: If you have not claimed the Recovery Rebate Credit in your 2021 tax return, now is your last chance to get this benefit. In December 2024, the Internal Revenue Service (IRS) announced that they would automatically issue payments to individuals who did not claim this credit in their 2021 tax return.

This Recovery Rebate Credit is available to those who did not receive any payment or received an incomplete payment from Economic Impact Payments (EIPs) — commonly called Stimulus Checks.

What is Recovery Rebate Credit?

The Recovery Rebate Credit is a Refundable Tax Credit, which means it can be added directly to your tax refund and you can get it in cash, even if your tax due is zero. This credit was given to those who were facing financial difficulties during the COVID-19 pandemic.

Who is eligible?

According to the IRS, people who did not file a tax return or claim this credit in 2021 may still be eligible. Some of the key eligibility conditions are as follows:

• The person did not claim the Recovery Rebate Credit in 2021.
• The person’s annual income must be within the IRS’s set limits.
• The person must not have received one or more Stimulus Payments or received a smaller amount.

The maximum amount a person can receive is up to $1,400, depending on eligibility.

What is the deadline?

The IRS has clarified that the deadline for this credit is April 15, 2025. This means that if you have not filed your 2021 tax return yet, you can still file it and claim this credit.

How will you get a payment?

In December 2024, the IRS announced that it would automatically issue payments to people who did not claim the Recovery Rebate Credit on their 2021 returns but were eligible.

• These payments are expected to be made by the end of January 2025.
• If you filed a 2023 tax return, the payment will be deposited into the same bank account that was on your return.
• If your bank account is closed, no need to worry. The bank will return the payment back to the IRS, and then the IRS will send a check to your address.
• The IRS will also issue an information letter for these payments so you know how much and when you received the payment.

What should people do without a tax return?

The IRS has also said that people who have not yet filed a 2021 tax return can still claim the Recovery Rebate Credit — provided they file the return before April 15, 2025.

This is especially important for those who have very low income or no regular income. Such people are also being encouraged to file taxes, as they too may be eligible for this credit.

Estimated total payment amount

The IRS estimates that a total of $2.4 billion will be distributed under this scheme. This amount will go to those who did not take advantage of this credit earlier.

Conclusion

The Recovery Rebate Credit is an important opportunity for those who were deprived of Stimulus Payments. This new announcement of the IRS provides relief to those who could not claim this credit by mistake or for some other reason.

If you have not filed your 2021 tax return yet, do not delay. File the return by April 15, 2025 and take advantage of your right. This is not only financial support, but it is also your right.

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