TIME is running out for more than a million Americans who might still qualify for a $1,400 stimulus payment, but action is required before the April 15 tax deadline.
The IRS is encouraging individuals who have not filed a 2021 tax return to do so, as this is the only method to claim the Recovery Rebate Credit.
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The refundable credit aims to ensure that those who missed the third round of stimulus checks during the pandemic receive the funds they deserve.
If you did not file a 2021 tax return, this is your last chance to claim what could potentially be a significant amount.
This credit can reduce your tax liability for that year or enhance your refund by up to $1,400 per person.
WHO QUALIFIES?
To be eligible, you must submit your 2021 tax return by the filing deadline on April 15, even if you are also submitting your 2024 return.
The IRS will determine your eligibility based on the income information provided in that return.
Eligibility depends on your adjusted gross income (AGI) for 2021.
Individuals with an AGI of $75,000 or less qualify for the full $1,400, while married couples filing jointly could get up to $2,800 if their combined AGI was $150,000 or lower.
Payments start to phase out at higher income levels, becoming unavailable to those earning more than $80,000 individually or $160,000 jointly.
ADDITIONAL OPTIONS
This credit, which is aimed at low- to moderate-income working families, could provide up to $6,728.
The amount will depend on your income and the number of children you have.
The first two rounds of Recovery Rebate Credit payments have already been issued.
One payment was disbursed in December, and another in January.
The April 15 deadline is your final opportunity to secure what may be a substantial financial benefit.
The maximum amount of $1,400 can either be deducted from your tax obligations for 2021 or issued as part of your overall refund.
You can file using IRS Free File tools online or seek assistance from a reliable tax preparer.
2025 Tax Season
The tax season commenced on January 27, and individuals must complete their filings by April 15.
Those who miss this deadline may incur penalties.
However, taxpayers requiring additional time can apply for an extension, providing until October 15 to file.
To do this, fill out Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
This can be submitted by mail, online via an IRS e-filing partner, or through a tax professional.
While there’s no fixed schedule, the IRS has indicated that taxpayers may receive refunds within 21 days of filing.
It’s crucial to avoid errors on any forms, as mistakes could result in delays.
Those filing by mail may get their returns within a month or might experience delays as the IRS processes numerous submissions.
As of January 31, the average refund amount was $1,928, according to the IRS.
This is an increase compared to the $1,395 average for the same period in 2024.
The average direct deposit refund for 2025 was even higher, recorded at $2,069 by the IRS.
To check the status of your refund, the IRS offers an online tool called Where’s My Refund?
This tool works within 24 hours of e-filing and typically within four weeks of filing a paper return.
