The clock is ticking for Americans looking to claim pandemic-era stimulus checks. According to the Internal Revenue Service (IRS), eligible taxpayers have until April 15, 2025, to file their tax returns and possibly receive the Recovery Rebate Credit, which was designed to aid those who missed out on previous Economic Impact Payments (EIPs) during the COVID-19 pandemic.
It is estimated that 1.1 million Americans stand to gain access to approximately $1 billion in unclaimed refunds through this initiative. Historically, many eligible individuals did not claim these payments on their 2021 tax returns, either by leaving the relevant fields blank or incorrectly marking them as $0. This reporting oversight means that there is still a significant buffer zone for taxpayers who have not yet filed or who may not be fully aware of their eligibility.
As necessary payments of up to $1,400 per individual—and an additional $1,400 for each qualifying dependent—are made available for claim, the IRS has been proactive in notifying potential recipients. In a recent communication, they informed roughly one million taxpayers of their qualification status, emphasizing the requirement to file a 2021 tax return to access these funds.
Eligible individuals might recall the three payments issued between March 2020 and March 2021 that totaled approximately $814 billion aimed at bolstering family finances during the pandemic. The payments were rolled out in increments: the initial allowance of up to $1,200 per person and $500 per child via the CARES Act in March 2020; $600 per person and child in December 2020 through the Consolidated Appropriations Act; and finally, payments of up to $1,400in March 2021 via the American Rescue Plan Act.
The IRS has been stressing the importance of filing a tax return regardless of income level, indicating, "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." Thus, the opportunity to reclaim money owed will remain until the well-defined deadline.
The agency also cautioned that filing is not without its complexities. Taxpayers seeking to claim their credit must ensure their information is up to date; failure to do so may result in payment issues. Refunds will either be sent to the bank account listed on the taxpayer’s 2023 tax return or to their address of record, depending on past filing history and preferences.
IRS officials warned that if you had closed your banking account, the funds would return to the agency and may delay your refund even further. Additionally, the financial landscape for the IRS remains turbulent as significant staffing cuts are anticipated, complicating the landscape for constituents needing support or seeking guidance this filing season. The challenges stem from both ongoing budget constraints and staffing changes instigated by government policy during the last administration.
In a sobering reminder of the urgency, the IRS pointed out, "If they don't file within three years, the money becomes the property of the U.S. Treasury." This highlights the necessity for eligible individuals to take swift action.
For those unsure about filing or their eligibility, the IRS encourages taxpayers to begin gathering documentation promptly. Creating or logging into an IRS individual online account can facilitate the process, enabling filers to view prior Economic Impact Payments, calculate their Recovery Rebate Credit, and precisely claim what they are owed.
To further assist individuals, the IRS suggests checking key records and transcripts well before the deadline of April 15, 2025. This proactive approach allows filers to sidestep potential processing delays that can be exacerbated by staffing shortages and rising inquiries during the peak tax period. With direct deposit and IRS notifications in play from previously neglected filings, there’s a golden opportunity to ensure that eligible recipients don’t lose out on the funding intended to help them through challenging times.
Ultimately, as eligible taxpayers prepare to navigate this tax season, they must remember that the Recovery Rebate Credit acting as a lifeline during these trying economic times remains within reach. Address your filing needs urgently, and don’t miss this last chance to receive the checks that could significantly ease financial stress amid an uncertain landscape.
