Millions of Americans received a $1,400 (£1085.98) stimulus payment—but what should you do if it never arrived? If you’re curious about why you didn’t receive this vital financial assistance or if it’s still possible to claim it, you are not alone.
If you didn’t submit your 2021 tax return, you might be missing out on this financial aid. The IRS continues to distribute $1,400 stimulus payments to approximately a million individuals who did not receive them initially.
Distribution of Payments
The IRS automatically issues these payments because individuals were required to claim this credit initially. This process ensures that everyone eligible receives the funds they deserve.
This initiative is known as the Recovery Rebate Credit, aimed at enabling you to receive any 2021 stimulus funds that you might have overlooked. You can still claim it if you qualify but were not issued the payment. Remember, you must submit a 2021 tax return by April 15, 2025.
The payment will be sent directly to your bank account based on your 2023 tax details, or you may receive a physical check.
Explaining The Stimulus Credit
This stimulus payment, part of the 2021 American Rescue Plan, was the final round of financial assistance distributed to support individuals during the COVID-19 pandemic. The payment amount can reach up to $1,400 for each individual; the exact amount is determined by your income level. Generally, as your income increases, the payment amount decreases.
Single filers: If you filed as single, you will receive the full $1,400 if your 2021 income was $75,000 (£58177.42) or less. The payment amount gradually reduces if your income exceeds $75,000, and you will not receive anything if your income reaches $80,000 (£62055.91) or more.
Married filing jointly: If you and your spouse filed jointly, you will collect the full $2,800 (£2171.96) if your combined 2021 income was $150,000 (£116354.84) or below. The payment will start to diminish if your combined income exceeds $150,000 (£116354.84), and no payment will be made if your joint income is $160,000 (£124111.82) or more.
Dependents: The IRS indicates that if you had dependents in 2021, you could be eligible for an additional $1,400 per dependent, regardless of their age. However, similar to the main payment, this extra amount is also impacted by your income level. As your income rises, the amount you receive for each dependent may decrease or disappear entirely.
The April 15 Deadline
Since the announcement in December, the IRS has been automatically dispatching payments to eligible individuals. This includes those who filed their taxes but omitted the Recovery Rebate Credit section or entered $0 while still meeting the criteria.
This scenario leaves room for those who have yet to file their taxes. You must submit your return by April 15 to claim this credit. After this date, you may miss out, as the IRS typically allows only three years for claiming refunds or credits, according to a CNBC Make It report.
Don’t allow unclaimed funds to slip away. If you believe you might qualify for the $1,400 Recovery Rebate Credit, take prompt action. Compare your 2021 income with IRS guidelines and gather your essential tax documents.
Submitting a 2021 tax return before the April 15, 2025 deadline could result in a substantial financial benefit. This is your opportunity to secure funds meant to alleviate difficulties during a challenging time.
Originally published on IBTimes UK
