As we enter the new year, some individuals may be eligible for a new stimulus payment. Throughout the COVID-19 pandemic, the US government issued various stimulus checks and rebates to assist struggling families with immediate costs amid job uncertainties, as well as to encourage spending to avert a recession. If you missed claiming one of these credits in 2021, there’s still an opportunity to do so.
Claim Your $1,400 Recovery Rebate Credit
During the pandemic, households received three rounds of stimulus payments. One such payment was the Recovery Rebate Credit, where in March 2021, eligible tax filers could obtain $1,400 per income tax filer and $1,400 for each child under the American Rescue Plan Act. This plan was a $1.9 trillion economic stimulus package that Congress passed and President Joe Biden signed into law on March 11, 2021. Its purpose was to accelerate the nation’s recovery from the economic and health impacts of the COVID-19 pandemic.
In December 2024, the IRS began issuing Recovery Rebate Credits to eligible individuals who had not claimed their credits on their 2021 tax returns. Some individuals may have received less than the full amount they were owed at that time. These discrepancies will be corrected to ensure recipients receive the full $1,400 they are entitled to.
No Further Action Needed by Eligible Recipients
If you qualify for the unclaimed Recovery Rebate Credit, there is no additional action required on your part. The IRS will automatically deposit the funds to your account. Unfortunately, some phishing scammers are attempting to exploit the IRS’s release of these payments by posing as the IRS, seeking personal financial information under the pretense of needing it to process your credit.
“To streamline this process and guarantee that this aid reaches those in need, we are implementing automatic payments, meaning taxpayers will not have to submit an amended return to obtain it,” stated IRS Commissioner Danny Werfel in a December 2024 declaration.
How to Track Your Refund Status
The IRS suggests using their “Where’s My Refund?” tool to monitor the status of your refund if you believe you are eligible for the recovery rebate credit. To access this tool, you will need to provide the following information:
- Your Social Security number or Individual Taxpayer Identification Number (ITIN)
- Your marital status
- The exact amount of the refund claimed on your return
- “Return received: We have received your return and are currently processing it.”
- “Refund approved: Your refund has been approved and is being prepared for issuance on the specified date.”
- “Refund sent: Your refund has been sent to your bank or mailed to you. It may take up to 5 days for it to show in your bank account, or several weeks for your check to be delivered by mail.”
Looking After Your Financial Wellbeing
While stimulus payments like the Recovery Rebate Credit can provide immediate financial support, it’s crucial that you are regularly monitoring your finances and budgeting. For sustained financial health and to reduce your stress, ensure you manage your finances efficiently, live within your means, and avoid overspending.
If you’re unsure how to enhance your financial stability, many experts recommend beginning to invest your money. Beating inflation and leveraging the power of compound interest as soon as possible is vital to ensure you can retire comfortably without financial worry.
