WASHINGTON — The IRS is urging around one million taxpayers to remember that they have fewer than two weeks left to apply for a tax credit that could yield a stimulus payment of up to $1,400. These payments are associated with a credit available for individuals who missed out on one or more Economic Impact Payments (EIP).
During the COVID-19 pandemic, three EIPs, often referred to as stimulus payments, were issued. While countless individuals received these payments without difficulty, not every qualified taxpayer collected their stimulus checks for a variety of reasons. Upon reviewing data related to these payments, the IRS discovered that approximately one million taxpayers may still claim a credit and receive funds.
The IRS has previously sent automatic payments to eligible taxpayers who did not claim the credit on their 2021 tax return. It is anticipated that the distribution of these payments will be completed by the end of January 2025. However, those eligible who have not submitted a 2021 return have yet to receive payment.
Taxpayers who have not yet filed their 2021 tax returns can still do so as long as they submit their return by April 15, 2025. To obtain the stimulus payment, they must claim the Recovery Rebate Credit on their return. The IRS emphasizes that filing a 2021 tax return and claiming the credit is essential to receive the stimulus payment, regardless of whether one’s income from “a job, business, or other source was minimal or absent.”
The amount of the stimulus payment varies based on multiple factors as per the IRS guidelines. The maximum payment is $1,400. For further details regarding the 2021 Recovery Rebate Credit and filing your 2021 taxes, please visit the IRS website.
