Based on a recent survey, millions of taxpayers have yet to collect the remaining 2021 stimulus funds.
As part of its COVID-19 relief efforts, the US government awarded over $930 billion in direct Economic Impact Payments, with each adult receiving up to $1,200 in April 2020, $600 in December 2020, as well as $1,400 in March 2021.
These payments for stimulus were basically advance payments of the Recovery Rebate Credit, a fully refundable tax credit.
The credit was accessible for tax years 2020 and 2021, which means that people who did not get their stimulus checks may have claimed them on tax returns submitted in spring 2021 and 2022.
Stimulus Check 2021 Eligibility
According to the inquiry, about 2.9 million people filed 2021 tax returns with no claim to the Recovery Rebate Credit — despite the fact that they may be eligible for it.
In accordance with TIGTA’s proposal, the IRS has also agreed to continue delivering information on the accessibility of the credit as well as how to claim it on a regular basis.
In general, you cannot claim the Recovery Rebate Credit if you might have been claimed as a beneficiary on another taxpayer’s 2021 tax return, if you aren’t a U.S. citizen, or even if you don’t have a valid Social Security number.
However, if you were not previously eligible for the third stimulus check or the full amount — or if you just forgot — you may be able to claim the Recovery Rebate Credit today.
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How to Claim Recovery Rebate Credit for 2021?
If you did not get the full amount of the third stimulus payment but believe you are qualified, you must submit a tax return for that year claiming the Recovery Rebate Credit, even if you are normally a non-filer.
The IRS normally allows taxpayers up to three years to claim credits before claiming a refund, meaning you have until the deadline for tax year 2024 (which will be in April 2025) to submit or amend your 2021 return. According to an IRS official, the three-year window applies to this credit.
The simplest way to file your tax return is electronically, and you must include the Form 1040 Recovery Rebate Credit worksheet with your tax return.
The form will ask for your adjusted gross income as well as the amount of the third stimulus payment you, your partner, and dependents received, so have that information handy.
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