Time is of the essence for Americans who did not receive their $1,400 stimulus payment from 2021, as the Internal Revenue Service is alerting that April 15 is the last day to claim these funds. With an estimated $1 billion in unclaimed refunds awaiting over 1.1 million taxpayers, financial experts stress the importance of filing 2021 tax returns before the approaching deadline.
Why millions of Americans may still qualify for stimulus funds
The 2021 stimulus checks were introduced under the American Rescue Plan to provide financial relief to those affected by the COVID-19 pandemic. Despite their widespread distribution, a considerable number of eligible recipients did not receive their payments due to reasons such as misunderstandings regarding eligibility, outdated address details, or failing to file tax returns.
For individuals who didn’t receive the $1,400 payment, submitting a 2021 tax return gives them the opportunity to claim the recovery rebate credit. This measure guarantees that eligible individuals can still obtain this financial assistance, even though a significant time has elapsed since the original distribution period.
Robert Nassau, a law professor at Syracuse University who manages the school’s low-income tax clinic, emphasizes that those who missed the stimulus payments are quickly running out of time to take action. As the deadline approaches, his advice becomes crucial for individuals who could benefit from this financial aid.
How the IRS intends to distribute remaining payments
In December, the IRS announced its plan to automatically send payments of up to $1,400 to eligible people who did not claim the recovery rebate credit on their 2021 tax returns. The agency noted that these payments were set to begin arriving via direct deposit starting in late January.
Taxpayers unsure if they received a stimulus payment can set up an online account with the IRS to examine their tax records and confirm whether a payment was issued. This step can aid individuals in determining if further action is needed before the April 15 deadline.
The considerable amount of unclaimed funds, totaling $1 billion, highlights the extent of this issue and reveals how many Americans may still be missing out on financial assistance they are entitled to receive.
Filing options to meet the April 15 deadline
For those planning to submit their 2021 return via mail, experts recommend using certified mail service to ensure proof of timely submission. Professor Nassau advises investing an extra $5 for certified mail to avoid disputes regarding whether the return was filed on time.
He notes that the IRS sometimes denies submissions received after the filing deadline without considering postmark dates or other factors, making this small investment in certified mail a worthwhile precaution against potential issues.
Several free filing options are still available for 2021 tax returns, though taxpayers should be aware that some services may not support electronic filing for prior year returns. Quickly exploring these options is essential for those seeking to meet the fast-approaching deadline.
The continuing significance of these payments
These stimulus payments remain important even three years after their initial authorization. As Lisa Perkins, a clinical professor and director at the UConn Law Tax Clinic in Connecticut, points out, the current economic conditions make these payments crucial for many Americans.
With increasing costs for essentials such as food and personal care items straining household budgets, an additional $1,400 could provide substantial relief, especially for individuals and families facing food insecurity or other financial challenges.
The ongoing effects of inflation and economic uncertainty mean that access to these funds could offer meaningful support to eligible taxpayers who act before the deadline.
Immediate actions to take
With April 15 approaching quickly, taxpayers who believe they may qualify for the 2021 stimulus payment should act without delay to file their tax returns. This process includes:
- Collecting necessary documentation from 2021, such as income statements like W-2s and 1099 forms
- Determining eligibility for the recovery rebate credit based on 2021 income
- Selecting a filing method, whether via tax software, professional help, or paper forms
- Ensuring timely submission before the April 15 deadline, using certified mail for paper filings
By taking these steps promptly, eligible individuals can access funds that rightfully belong to them and potentially receive significant financial support during tough economic times.
Considerations beyond the deadline
Although the IRS has set April 15 as the deadline for claiming 2021 stimulus payments, taxpayers should be mindful of potential exceptions that may apply under special circumstances. For instance, those deployed in combat zones or affected by federally declared disasters might be eligible for deadline extensions.
Furthermore, taxpayers who have previously requested extensions for their 2021 returns should consult with tax professionals regarding their specific situations, as different rules may apply depending on individual circumstances.
As the deadline draws near, prompt action remains the most reliable method to secure eligibility for these payments without facing complications or delays that could lead to permanently losing access to these funds.
With a significant amount of unclaimed refunds still available and ongoing economic pressures affecting numerous households, seizing this final chance to claim stimulus payments is a key financial consideration for eligible taxpayers. The April 15 deadline serves as an urgent reminder that time is fleeting to obtain these pandemic-era benefits.
