Residents may still claim 2021 stimulus checks under specific conditions.
Individuals who did not apply for the Recovery Rebate Credit on their 2021 taxes could still qualify for a stimulus payment of up to $1,400.
Unbranded – Newsworthy
- Some taxpayers who have not filed their 2021 tax returns only have until April 15 to receive their refund.
- If you have already received all eligible stimulus funds, do not file a return just to claim the recovery rebate credit.
A small window remains for individuals yet to receive their 2021 recovery rebate credit. However, keep in mind that many have already received their pandemic relief funds, so don’t get overly enthusiastic.
The maximum credit per individual is $1,400. A single taxpayer without dependents could qualify for $1,400. Married couples without children filing jointly can receive up to $2,800.
The recovery rebate credit was the final installment of three stimulus payments given by the federal government to support the economy during the pandemic.
It represents significant money for those who haven’t received the relief yet, but the deadline is quickly approaching.
April 15 Deadline Approaches for 2021 Filings
Time is limited for those who have yet to file their 2021 federal income tax returns. Meeting the April 15 deadline is important to claim any potential refunds owed, including the recovery rebate credit, for the 2021 tax period.
Your 2021 recovery rebate credit can decrease any tax liability or be included in your tax refund, per IRS guidance.
Any refunds for 2021 will automatically be applied to any amounts owed to the IRS or state tax authorities and may also be utilized to offset unpaid child support or other overdue federal debts, such as student loans.
In addition to the recovery rebate credit, several other tax benefits were enhanced for the pandemic year of 2021, including the child tax credit, credit for child and dependent care expenses, and the earned income tax credit. Filing a 2021 return can also allow you to access these credits.
Individuals who haven’t submitted a 2021 tax return are especially likely to qualify for some of these additional credits, heightening the urgency to file.
Eligible taxpayers who have not filed must do so to apply for the recovery rebate credit, even if their income was minimal or nonexistent, according to the IRS.
Claim the recovery rebate credit on Line 30 of the 1040 federal income tax return for the 2021 tax period.
Matt Hetherwick, chief program officer for the Accounting Aid Society in Detroit, mentioned that volunteer preparers at his organization have completed over 100 returns for the 2021 tax year this year alone to help meet the April 15 deadline.
“It’s a bit more than we typically observe, but not significantly so,” Hetherwick noted.
Given the difficulties many faced during the COVID-19 pandemic, he’s not surprised that some individuals are still seeking to file their 2021 returns.
However, he emphasized that the initial payments were made in advance in 2021; the only reason to file now would be for individuals who did not receive that money previously.
Starting in March 2021, the IRS began distributing economic impact payments directly to families, which were advance payments of the recovery rebate credit. If you received all the funds you were entitled to as an economic impact payment, you wouldn’t claim the credit.
Hetherwick noted that the payment distribution system was more efficient in 2021 since the IRS had finalized the process for earlier stimulus payments in 2020.
“Many individuals updated their information during the previous year to ensure they received the initial $1,400 — or potentially more based on qualifying dependents — and did not have to wait until filing their tax return,” Hetherwick explained.
In 2025, individuals earning up to $67,000 could qualify for complimentary tax assistance through the IRS’s Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.
Stimulus Payments Can Accumulate for Families
Be cautious when filing a 2021 return to avoid claiming the credit if you’ve already received your stimulus funds. Review your documentation to confirm whether you received the advance payments and whether you filed a 2021 tax return claiming the credit.
While most individuals received their payments, many did not see those advance payments in 2021 for various reasons and can still claim the credit on their 2021 filings.
Don’t fall prey to scams: Fraudsters have impersonated the IRS, claiming they can help you secure a $1,400 tax refund.
The recovery rebate credit applies to all qualifying dependents listed on a tax return. For instance, married couples filing a joint return with two qualifying dependents could be eligible for as much as $5,600.
The 2021 recovery rebate credit also allows additional amounts for each qualifying dependent claimed, not just children under 17.
Any recovery rebate credit received is not considered income for determining eligibility for federal benefits like Supplemental Security Income or the Supplemental Nutrition Assistance Program.
Income May Affect Qualification for the Full $1,400 Credit
The credit amount might be lower based on income, meaning high earners might receive only a partial credit or none at all.
The 2021 recovery rebate credit amount reduced to $0 quite rapidly, much sooner than past stimulus programs, depending on income.
A partial credit could be granted if your earnings fell within the phaseout range, which is $75,000 for singles, and $150,000 for married couples filing jointly, with a $112,500 cutoff for head of household.
Exceeding these income thresholds may result in losing eligibility for the credit entirely.
Those who filed as single or married filing separately qualify for $0 once they exceed an adjusted gross income of $80,000 as reported on Line 11 of the 1040 return for 2021.
The 2021 recovery rebate credit was completely eliminated for married couples filing jointly or qualifying widowers with adjusted gross incomes of $160,000 or more. Head of households are completely excluded at $120,000 or higher.
Unexpected Late Stimulus Payments Received This Year
It’s gratifying that many individuals received this financial assistance during the pandemic at a critical time. Some eligible individuals who initially didn’t receive their funds have also been compensated recently.
Approximately 1 million taxpayers were set to receive this unexpected assistance from the IRS in December and January.
These individuals filed their 2021 tax returns years ago but did not claim the often-discussed stimulus credit, likely due to unawareness of their eligibility.
Those who received this special payment a few months ago may have either left the recovery rebate credit line blank or inaccurately filled in a $0 when they were entitled to a credit.
Recipients of these automatic payments had funds directly deposited into their bank accounts or received checks via postal mail, along with notification letters from the IRS regarding the payments.
The IRS undertook additional measures to disburse this support after reviewing internal data, which confirmed eligibility. The affected taxpayers did not need to take further action to receive their stimulus funds by the end of January.
For instance, parents of children born in 2021, who did not gain total access to their stimulus payments, could potentially claim the recovery rebate credit for the child, depending on their income eligibility. However, they may have neglected to do so.
There Are Other Significant Financial Reasons to File
Beyond the recovery rebate credit, there are numerous reasons why more than a million individuals might want to file their 2021 federal income tax returns by April 15 if they haven’t done so yet.
Unfiled taxpayers could be missing out on $1.025 billion in federal income tax refunds for the 2021 tax year, as reported by IRS data.
Approximately 40,300 individuals in Michigan have not submitted their 2021 federal income tax returns, collectively owed about $37.3 million in refunds. Those owed are equally divided: half owe more than $854 while the other half owe less.
The refund figures referred to here generally apply to taxes withheld from paychecks or paid for 2021 and do not encompass any recovery rebate credit amounts applicable to certain filers on a 2021 return, nor do they include a range of other potential credits such as the earned income tax credit for eligible individuals.
For further inquiries, contact personal finance columnist Susan Tompor at: stompor@freepress.com. Follow her on X @tompor.
