Filing a tax return can be a complicated process, especially when tax laws change or special programs are implemented unexpectedly, as was the case during the covid-19 pandemic.
In the case of the latter, the federal government authorized three rounds of Economic Impact Payments (EIPs), also known as stimulus checks. Two of them corresponded to 2020, the third to 2021.
Most taxpayers received their stimulus checks automatically from the Internal Revenue Service shortly after they were approved, as they were advance tax credits for the fiscal year in which they were approved.
However, the IRS did not have data on file for every American who was eligible for one, most likely because they had not filed a tax return in 2019 or were first-time taxpayers.
Fortunately, they were able to claim the tax credit when they filed their tax returns for the fiscal year in which the stimulus payments occurred.
Unfortunately, those who did not claim the stimulus money on their tax returns through the Recovery Rebate Credit never received it. Good news is that the IRS is attempting to rectify the situation and has begun sending payments to those who were eligible but did not claim the credit.
$1,400 stimulus checks should arrive by the end of January
In December, the IRS announced that after reviewing its records, a million taxpayers were due funds from the third EIP totaling approximately $2.4 billion.
While they were eligible for up to $1,400, which was approved for every American man, woman, and child who met the requirements, the taxpayers failed to claim it.
If you filed a 2021 tax return but did not claim the stimulus payment through the Recovery Rebate Credit, you do not need to do anything. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” the IRS Commissioner, Danny Werfel, said.
The majority of the payments are expected to arrive in bank accounts by the end of January for those who use direct deposit with the IRS. Otherwise, they will be sent as paper checks that may take a little longer to arrive.
However, if you did not file a tax return for the fiscal year 2021, you still have time to claim money if you meet the eligibility requirements, but you should act quickly.
The deadline for filing a 2021 tax return and claiming the Recovery Rebate Credit is April 15, 2025. “The payments vary depending on several factors, but the maximum payment is $1,400 per individual,” according to the IRS.
You may also be able to claim other tax credits for that year if you meet the eligibility requirements like the expanded Child Tax Credit if you had a child, or children, 17 or younger at the end of 2021.
How can I find out if I’ll receive a $1,400 stimulus check from the IRS?
Check your 2021 tax return to see if you are eligible for one of the automatic $1,400 checks from the IRS. The Internal Revenue Service requests that you “keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.”
You can also access your tax records online through your ID.me account. If you don’t already have one, consider getting one. You can use it not only to check tax records, but also to access Social Security information and to protect your digital identity across multiple websites, ensuring that no one impersonates you online.
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