The timeframe for Americans to obtain a $1,400 stimulus check is quickly dwindling, and procrastination may result in a permanent loss of these funds.
April 15 marks Tax Day for 2024 returns, and it’s also the three-year deadline to claim any tax refunds or credits for the 2021 tax year, including the $1,400 Recovery Rebate Credit.
Why It Matters
During the COVID-19 pandemic, the federal government distributed multiple rounds of stimulus payments to Americans, but eligibility required filing a tax return.
Individuals who did not file taxes for 2021 may have overlooked the opportunity to claim the Recovery Rebate Credit, which will lapse and revert to the Treasury if not claimed by April 15.
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What To Know
If you believe you qualify for the stimulus check but have not received it, you need to file your 2021 taxes by April 15. Typically, you will require your W-2 and all other income documentation for that year.
Even if you filed in 2021 but did not request the Recovery Rebate Credit, you might still be eligible for the payment.
The IRS estimates that over a million Americans are still entitled to tax refunds or credits from 2021.
If you file for the stimulus check by April 15, the funds will be issued either via paper check or deposited using the banking information provided on your 2024 tax return.
The specific amount recoverable from the IRS is determined by your adjusted gross income. The full $1,400 is available for individuals with an adjusted gross income of $75,000 or less in 2021.
For couples filing jointly, this threshold rises to $150,000 for the 2021 tax year.
The IRS reports that over 1.1 million Americans have unclaimed refunds totaling more than $1 billion.
What People Are Saying
Kevin Thompson, a finance expert and CEO of 9i Capital Group, remarked to Newsweek: “The key aspect of the Recovery Rebate Credit is that it’s refundable, meaning you can still receive the credit even if you owe no taxes. Unlike most credits that merely reduce your taxable income, refundable credits go beyond what you owe, returning any excess amount to you as a refund.”
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, stated to Newsweek: “While it may seem unbelievable to many Americans who received stimulus checks during the pandemic, there remains a small group of taxpayers who qualified for payments but have yet to receive them.”
What Happens Next
All taxpayers should ensure their 2021 returns are submitted by April 15 to secure the funds before they are returned to the Treasury.
Additional tax refunds and credits may also be available for those who initially did not file taxes for 2021.
