Pandemic stimulus check: Who missed out on the third payment?
According to the IRS, roughly one million Americans did not receive the third check during its routine distribution. In early 2024, the IRS began sending payments to eligible beneficiaries who had been overlooked previously. This process was automatic and did not require any additional paperwork. The disbursements were intended for those who filed their returns but neglected to claim the credit.
Deadline to claim recovery rebate credit this month
Individuals who have yet to receive payment have until April 15 to file a 2021 tax return, a necessary step to claim the Recovery Rebate Credit. Missing this deadline will result in a complete forfeiture of the stimulus check. Taxpayers are permitted only a three-year period from the original filing date to submit returns for refunds.
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Why were some individuals left without payment in 2024?
Among those who missed out on the payment, even as the IRS initiated disbursements in 2024, were individuals who did not file their 2021 tax returns. Others had filed, but did not claim the Recovery Rebate Credit due to misunderstanding the qualifying criteria.
Eligibility criteria for $1,400 Covid-19 stimulus payment
– Individual tax filers must have had an adjusted gross income (AGI) not exceeding $75,000.
– A combined AGI of no more than $150,000 for married couples filing jointly.
– Earnings of up to $112,500 allowed for heads of household.
Note: Filers with dependents in 2021 could qualify for an additional $1,400 for each qualifying dependent.
How To Claim
1. The eligible beneficiary must file a 2021 federal tax return.
2. The Recovery Rebate Credit must be recorded on Line 30.
3. Ensure that the tax return is accurately completed.
Though you can still claim the Recovery Rebate Credit, it’s important to note that the purchasing power of the stimulus payment amount ($1,400) has significantly diminished due to inflation since it was introduced as part of the American Rescue Plan.
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FAQs
What is the deadline to claim the Recovery Rebate Credit?
The final date to claim the Recovery Rebate Credit is April 15, 2025.
What if I miss this deadline as well?
If you miss the opportunity to claim the Recovery Rebate Credit, you will lose the amount entirely, as the IRS only permits a three-year period from the original filing date for submitting a return. You are required to file a 2021 federal tax return to claim the Recovery Rebate Credit.
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