Taxpayers have a limited time left to ensure they receive a potential payment worth thousands of dollars from the Internal Revenue Service (IRS) for the year 2021.
During the coronavirus pandemic, Economic Impact Payments were distributed to American taxpayers. Those who did not receive their payments can still claim their funds via the Recovery Rebate Credit—but time is running out.
Newsweek has detailed all the necessary steps to ensure you don’t miss out on this opportunity.
Who Is Eligible for the Refund?
The credit is accessible to qualified individuals who did not submit a 2021 income tax return.
The Recovery Rebate Credit is available to those who had an adjusted gross income of up to $75,000 for single filers and married individuals filing separately, up to $112,500 for heads of household, and up to $150,000 for married couples filing jointly and surviving spouses. The payment amounts decrease for eligible individuals with adjusted gross income above those thresholds.
Earlier this year, the IRS distributed payments to eligible taxpayers who submitted a 2021 return but either left the Recovery Rebate Credit section blank or indicated $0, despite qualifying for the credit.
This measure followed an internal assessment of IRS data, which indicated that many eligible taxpayers filed returns without claiming the credit. The IRS reported that these payments were issued in late January 2025.
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What Is the Refund Amount?
The 2021 stimulus payments were valued at up to $1,400 for each individual and $2,800 for married couples. A family of four could receive up to $5,600 if they have two eligible dependents.
Timeframe for Claiming a 2021 Refund
The IRS permits taxpayers three years to file their returns and claim any refunds, which includes refundable tax credits and stimulus payments. Since the third round of stimulus checks was associated with 2021 tax returns, the deadline to claim these amounts is April 15, 2025—prompt action is necessary to avoid missing out.
After this date, you will forfeit the chance to receive any stimulus payments or other refunds due for that year, including refundable tax credits.
Consequences of Missing the Deadline
Once the deadline of April 15, 2025, has passed, the IRS will cease to issue any refunds for the 2021 tax year, with no extensions or grace periods offered for this specific deadline. However, there are limited exceptions, which include:
- Military members serving in combat zones may receive additional time.
- Individuals dealing with IRS processing errors or disputes may still have options.
- In rare circumstances, changes in legislation could extend the timeframe.
If these funds are not claimed, they become the property of the U.S. Treasury.
