The IRS is giving taxpayers one last opportunity to claim unclaimed 2021 Economic Impact Payments (EIPs) also known as the Recovery Rebate Credit through the filing of their 2021 tax returns. The deadline for filing is April 15, 2025, which marks the final day for eligible individuals to receive their full stimulus payment from the third round of relief issued during the COVID-19 pandemic.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit was a critical part of the U.S. government’s effort to provide financial relief during the COVID-19 pandemic. It was designed to help eligible taxpayers who had not received their full share of the third round of stimulus payments. The payments, which started in 2021, were aimed at supporting individuals and families affected by the pandemic’s economic impact.
For those who were eligible but did not receive or received partial stimulus payments, the IRS allowed them to claim the missing funds by filing a 2021 federal income tax return. The Recovery Rebate Credit could provide up to $1,400 for each eligible individual and their dependents, including children under the age of 18.
The Importance of Filing by April 15, 2025
The IRS announced that anyone who believes they are entitled to the Recovery Rebate Credit must file their 2021 tax return by April 15, 2025, to claim the funds. After this date, the opportunity to claim these payments will expire, and any unclaimed funds will revert to the U.S. Treasury. This is the final deadline to submit a claim, and no extensions will be granted.
If you miss the deadline, there is no way to recover these missed funds, so it is important for those who are eligible to act quickly. You can file online or through paper filing, but be sure to complete all necessary forms accurately to avoid delays.
For more information on how to file your taxes and claim the credit, visit the IRS website at IRS.gov.
Who is Eligible for the Credit?
To qualify for the Recovery Rebate Credit, taxpayers must meet specific criteria:
- You must have filed a 2021 tax return, even if you have little or no income.
- The credit is available for individuals who did not receive their full third-round Economic Impact Payment in 2021.
- Dependents, including children under 18, also make a taxpayer eligible for the credit.
- Taxpayers must meet income thresholds that were in place for the third-round payments. For individuals, the full credit was available if their adjusted gross income (AGI) was under $75,000. For married couples, the credit was available up to an AGI of $150,000.
The amount of the credit will vary depending on your eligibility. For most individuals, this means receiving up to $1,400 per person, which includes children and dependents. You may be eligible for a smaller payment if your income exceeded the thresholds for the third-round payments.
Automatic Payments for Some Eligible Taxpayers
In December 2024 and January 2025, the IRS distributed automatic payments to nearly 1 million taxpayers who had filed their 2021 tax returns but had not claimed the Recovery Rebate Credit. These payments, totaling about $2.4 billion, were issued automatically, so taxpayers did not need to take any additional steps. The funds were sent via direct deposit or paper check based on the information provided in the taxpayer’s 2023 tax return.
If you were one of the taxpayers who received an automatic payment, you do not need to take further action. For others, filing a 2021 tax return remains the only way to claim the credit. The IRS encourages anyone who believes they missed out on this credit to file their return as soon as possible to avoid losing the opportunity.
What Happens After April 15, 2025?
If you do not file your 2021 tax return by April 15, 2025, and claim the Recovery Rebate Credit, you will no longer be eligible to receive the third-round stimulus payment. This is the final opportunity to claim these funds. The IRS has made it clear that any unclaimed amounts will be returned to the U.S. Treasury.
Although this may seem like a final chance to secure financial relief from 2021, it’s important to recognize that individuals who miss the deadline may still be able to access other tax credits or financial support. Taxpayers who are unsure about their eligibility for any government assistance should consult a tax professional to explore their options.
How to File Your 2021 Taxes
To ensure you meet the filing deadline, you can file your 2021 taxes online or by paper. The IRS provides several options for taxpayers to file their returns, including through its Free File program, which allows eligible individuals to file for free if their income is below a certain threshold. You can also seek assistance through tax preparation services or volunteer programs for those who qualify.
What to Do if You Need Help
If you have questions about the Recovery Rebate Credit or need assistance in filing your taxes, the IRS provides a range of resources. These include online tools, frequently asked questions, and the ability to contact the IRS directly through its help lines.
Additionally, you can find a tax professional who can guide you through the filing process. Many community-based organizations also offer free tax preparation services for low-income individuals and families.
Conclusion
The final days to claim unclaimed IRS stimulus checks are quickly approaching. If you have not filed a 2021 tax return and believe you are eligible for the Recovery Rebate Credit, be sure to submit your tax return before April 15, 2025. After this date, any unclaimed funds will be forfeited. To get more information or begin the process, visit the IRS official website.