The Internal Revenue Service (IRS) has announced that April 15, 2025 is the final date for eligible taxpayers to claim the Recovery Refund Credit, which offers up to $1,400 per person. This benefit aims to provide financial relief to those who missed out on the third stimulus payment (also known as Economic Impact Payments, or EIP) during the pandemic. If you are eligible but have not claimed this payment, this is your last chance to do so.
What is the Recovery Refund Credit?
The Recovery Refund Credit was introduced for people who did not receive the third stimulus payment, which was issued in March 2021. Unlike the previous two rounds of stimulus checks, this credit only applies to the 2021 tax year. It is designed to help those who missed the third round of Economic Impact Payments, including people with minimal or no income in 2021.
As of December 2024, the IRS began distributing the remaining funds, estimated at $2.4 billion. However, taxpayers must submit their 2021 returns by April 15, 2025, to receive the benefit, if they haven’t already filed for it.
How to Claim the $1,400 Recovery Refund Credit
To claim the $1,400 stimulus check, eligible individuals need to follow these steps:
1. File Your 2021 Tax Return: If you haven’t already filed, you must submit your 2021 tax return by April 15, 2025. You are still eligible for the credit even if you had no income in 2021.
2. Check Your Adjusted Gross Income (AGI): The exact amount of the credit will depend on your AGI.
- For singles: The maximum $1,400 credit applies if your income is under $75,000.
- For couples filing jointly: The maximum $2,800 credit applies if your income is under $150,000.
3. IRS Notification: If you’ve already filed your 2021 return but missed the credit, the IRS will automatically send the payment to you. Payments will be issued via direct deposit or physical check, and you will be notified by mail.
4. Check for Discrepancies: The IRS recommends reviewing your online EIP records or the relevant line on your tax return to confirm if you’re eligible or if you missed the credit. If you find any discrepancies, you must submit an amended return before the April 15, 2025 deadline.
Why Some People Missed the Credit
An IRS report revealed that approximately 12% of eligible individuals failed to claim the credit in 2021. The reasons for missing out included errors on tax forms or a lack of understanding of the program. To help taxpayers, the IRS provided assistance channels, but there are no extensions past the April 2025 deadline. After this date, retroactive claims for the Recovery Refund Credit will no longer be accepted.
What Happens After April 15, 2025?
After April 15, 2025, no further claims for the Recovery Refund Credit will be accepted, and any missed opportunities to claim the $1,400 stimulus payment will be lost. If you believe you qualify and haven’t filed yet, now is the time to act.
Are the Payments Taxable?
The Recovery Refund Credit is not subject to federal taxes. However, some states may consider it taxable income, so it’s essential to check with your local tax authority to confirm whether you need to report it on your next state tax return.