Taxpayers who failed to submit their 2021 tax returns may still be eligible for stimulus payments of up to $1,400.
In December 2024, the IRS revealed plans to distribute around $2.4 billion in stimulus payments—up to $1,400 per eligible person—to U.S. taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax filings.
The Recovery Rebate Credit was specifically established for taxpayers who did not receive one or more Economic Impact Payments, commonly referred to as stimulus checks, according to the IRS.
Who is Eligible for the Stimulus Payment?
Those who filed a 2021 tax return but did not claim the Recovery Rebate Credit do not need to take any additional steps. As per the IRS, these payments began to be issued automatically in December 2024. Eligible taxpayers can expect to receive a notification via a letter from the agency. Payments will be sent through direct deposit or as a paper check mailed to the taxpayer’s registered address.
Individuals who have yet to file their 2021 tax returns may still be eligible if they act promptly. To claim the Recovery Rebate Credit, taxpayers must file their overdue 2021 returns by April 15, 2025, according to the IRS.
How Many Individuals Are Eligible?
According to a statement from the IRS on March 11, over 1.1 million Americans across the country currently have unclaimed refunds from the 2021 tax year. In total, these unclaimed refunds exceed $1 billion, with a median refund estimated at $781 per taxpayer. This estimated amount does not cover additional credits like the Recovery Rebate Credit.
California has the highest number of residents potentially eligible for unclaimed 2021 refunds, with approximately 116,300 individuals. Texas is not far behind, with around 102,200 eligible taxpayers. Other states with significant numbers of eligible individuals include New York, Florida, Pennsylvania, Illinois, and Michigan.
Key Factors to Consider
Taxpayers with outstanding taxes or debts—including unpaid child support or overdue federal student loans—might have their refund amounts, including stimulus payments, reduced by what they owe.
How Can Taxpayers Verify Their Status?
After submitting their overdue returns for the 2021 tax year, taxpayers can track their refund status using the IRS’s online tool known as “Where’s My Refund.” This tool offers updates on whether a return has been received, approved, or issued. The IRS recommends checking this tool just once a day, as updates usually occur overnight.
Generally, electronically filed returns receive refunds within about three weeks, while mailed returns can take four weeks or more. Returns that require corrections or further examination may take longer, and amended returns could take up to 16 weeks.
Changes for Filing Dependents on the Horizon
Starting with the 2025 filing season (for the 2024 tax year), taxpayers filing electronically will be allowed to submit returns that claim dependents even if those dependents were already claimed by someone else, provided they include a valid Identity Protection Personal Identification Number (IP PIN), as stated by the IRS in March.
“This change will expedite the time it takes for the agency to process tax returns and shorten the wait for tax refunds for those with duplicate dependent filings,” according to the IRS’s statement.
