The Internal Revenue Service (IRS) is set to distribute a $1,400 stimulus payment to eligible Americans who failed to claim the Recovery Rebate Credit on their 2021 tax returns. As the April 15, 2025 deadline rapidly approaches, the agency reminds these individuals that it is imperative to file their tax returns to qualify for the funds.
According to IRS data, approximately 1.1 million eligible individuals have yet to claim these payments, totaling over $1 billion. The IRS recently announced that this round of stimulus checks is an effort to reach those who missed out on previous pandemic relief payments, as authorized under the American Rescue Plan Act of 2021.
"Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business, or other source was minimal or non-existent," reported by the IRS. This credit offers crucial financial relief to those who may have been overlooked during the initial disbursement of funds.
The payments were automatically dispatched beginning in December 2024, with the IRS projecting most recipients would receive their funds by late January 2025. Importantly, eligible taxpayers do not need to take any action if they already filed their 2021 tax return correctly. These individuals will receive a check or direct deposit from the IRS, with funds based on the information provided in their 2023 tax returns.
However, those who did not submit their 2021 tax returns must act quickly. The IRS has made it clear that the deadline for filing is April 15, 2025. For individuals who filed their returns but left the Recovery Rebate Credit field blank or indicated $0 despite being eligible, they too will benefit from the automatic relief payments. The IRS has estimated that these automatic payments will provide around $2.4 billion in stimulus funds.
Taxpayers are particularly energized by the potential for significant monetary support. Single filers can expect to receive the full $1,400 if their Adjusted Gross Income (AGI) does not exceed $75,000; likewise, married couples filing jointly can receive $2,800, granted their combined income does not exceed $150,000.
The stakes for potential recipients are high, as the agency has established no plans for extensions or automatic payments for taxpayers who continue to miss the April deadline. Last-minute filers should also prepare for possible processing delays that could jeopardize their eligibility for the stimulus funds.
IRS Commissioner Danny Werfel emphasized, "These payments are an example of our commitment to go the extra mile for taxpayers." This initiative underscores the importance of ensuring all eligible taxpayers receive the funds they are rightfully entitled to during these challenging times.
The median refund amount for non-filers from 2021 is projected to be about $781, excluding the Recovery Rebate Credit. The IRS is urging anyone who has not yet filed to check their tax records; they could discover unclaimed refunds waiting to be collected.
To determine eligibility, taxpayers can review their 2021 tax returns for any mention of the Recovery Rebate Credit. If they see a blank or incorrect amount in that field, they may still file to claim the credit before the cutoff date.
Given the looming deadline, many Americans are understandably anxious to file their returns or check their eligibility status as they look for much-needed financial assistance. For those who qualify, this new influx of funds could mean a significant boost to their financial stability, alleviating some burdens from the economic fallout of the pandemic.
As the IRS prepares to distribute these payments automatically in response to taxpayer needs, onlookers are hopeful that the timely arrival of stimulus checks will provide the crucial support for families and individuals seeking relief from persistent economic challenges. It’s once again an opportunity for many Americans to get back on track as they navigate toward a more stable financial future.
