You might be entitled to receive hundreds of dollars from the IRS. However, the government is fast approaching a deadline that could prevent you from accessing that money permanently.
WASHINGTON — There’s a ticking clock for over a million individuals nationwide to collect the funds they are owed from the IRS due to not filing a 2021 tax return. This includes the $1,400 stimulus payment from the pandemic relief program.
The IRS has recently revealed that approximately 1.1 million people have until April 15 to file tax returns for unclaimed refunds from the 2021 tax year, amounting to more than $1 billion across the country.
The IRS estimates that the median refund amount owed for 2021 is $781, excluding stimulus check amounts.
California (116,300), Texas (102,200), New York (73,000), and Florida (69,800) are among the states with the highest number of individuals potentially eligible for these refunds.
Typically, taxpayers are allowed three years to file and claim tax refunds; otherwise, the money is transferred to the U.S. Treasury. April 15 also marks the cutoff date for this tax season, where filers must either submit their taxes or request an extension.
In December, the IRS began automatically disbursing over 1 million payments to individuals who filed their 2021 taxes but did not claim the Recovery Rebate Credit at the time. This credit allows those who missed one or more stimulus payments during the COVID-19 pandemic to apply for them.
Who qualifies for the stimulus check payment from the IRS?
Anyone who did not submit their tax return for 2021 may qualify for payments of up to $1,400 per person. The total amount received by each individual depends on various factors and could be less than the maximum $1,400.
Even individuals with no income or very low earnings may qualify for the credit as long as they file a 2021 tax return by the designated deadline.
Those who have already filed a 2021 tax return but neglected to claim the stimulus payment should have recently received their funds automatically.
How can you obtain the payment?
To receive the payment, simply file your 2021 tax return. Once you’ve filed, you will receive either a direct deposit or a paper check by mail, along with a letter confirming the payment.
“The IRS is diligently working to enhance services and assist taxpayers,” stated IRS Commissioner Danny Werfel. “These payments exemplify our commitment to supporting taxpayers. Our internal data revealed that approximately one million taxpayers missed out on this complex credit when they were actually eligible. To streamline the process and deliver these funds to eligible individuals, we are automatically issuing these payments, eliminating the need for them to file an amended return.”
The IRS’s initiative to encourage individuals to claim their funds is part of the federal government’s efforts to conclude its response to the unprecedented challenges posed by the COVID-19 pandemic beginning in 2020.
Formally recognized as Economic Impact Payments, three rounds of stimulus checks were directly deposited into the accounts of millions of Americans throughout 2020 and 2021.
The initiative aimed to provide financial support to Americans who faced unemployment, in an effort to revive the economy and prevent further business closures.
In any large-scale government initiative like the stimulus checks, there are instances of individuals falling through the cracks. The IRS has been advocating for those who haven’t received their full payments to claim them through their tax returns for years.
