If you didn’t file your tax return in 2021, it might be worth doing it. You can leave money on the table.
The Internal Revenue Service is sending Covid-19 stimulus checks worth $1,400 to the roughly 1 million taxpayers who did not receive them. Because credits were originally self-promoted, the IRS now automatically sends these payments to ensure that eligible taxpayers get their payments.
Called Recovery Rebate Credit, tax clauses help you claim missed payments from 2021. You can still claim it if you are eligible but have not received the funds. But there’s a catch. You must file your tax return by April 15th, 2025.
Payments will be automatically deposited using bank information sent by paper checks using the bank information provided on the taxpayer’s 2023 tax return.
How credits work
Stimulus checks, part of the 2021 American Rescue Plan Act, were the final payments issued to provide financial relief during the Covid-19 pandemic.
It offers up to $1,400 per person, with the exact amount dependent on adjusted gross income and phased out at higher income levels.
Single Filer: If your 2021 AGI is under $75,000, you are fully qualified for $1,400. Credit begins to begin earnings declines of over $75,000 and is phased out completely at $80,000. Jointly married submission: If you total AGIs in 2021, $2,800 (for two people) is eligible for $150,000 or less (for two people). Credit begins a decline in total revenues of over $150,000 and is completely eliminated at $160,000. Dependents: Family members can receive $1,400 per dependent in 2021, regardless of age, but the amount is subject to the same gradual income limit as the primary filer.
Originally announced in December, the IRS automatically sent payments to eligible taxpayers, including those who filed $0 entries in their tax returns or recovery rebate credit data fields, but they still qualify for credit.
That leaves eligible people who have not yet filed their tax returns. Generally, April 15th is the last day you will be billed for credit, as the IRS only allows you to apply for a refund or credit within three years.
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