CHECKS valued at $1,400 could disappear in just days for certain Americans unless they take prompt action.
This funding is part of stimulus checks that approximately 1.1 million taxpayers have yet to claim.
In 2021, a Recovery Rebate Credit was launched as part of a relief initiative after the peak of the coronavirus pandemic.
This credit was distributed by the Internal Revenue Service (IRS) to aid working Americans affected by restrictions, closures, social distancing, and various other circumstances.
Three rounds of Economic Impact Payments, or stimulus checks, were issued under the Recovery Rebate Credit program.
The deadline to claim funds from the first two rounds has now passed, and the deadline for the third round is approaching quickly.
Only those who failed to file their 2021 tax return and are, therefore, unable to access the third round of funding may claim the estimated $1,400.
They must file their 2021 tax return (along with the 2024 tax return) by April 15, 2025.
The $1,400 also represents a refundable credit.
This means it will either go towards any outstanding dues owed by taxpayers or be issued as a refund if nothing is owed.
RESULTS WILL VARY
It’s crucial to remember that the exact credit amounts will vary based on adjusted gross income (AGI).
For instance, married couples who filed jointly with a total AGI of up to $150,000 in 2021 can receive as much as $2,800 combined.
Conversely, those with an income of $160,000 or more will not be eligible.
Dependent individuals will also receive the $1,400, irrespective of their age.
The IRS has estimated that around $1 billion in refunds and credits from 2021 remain unclaimed, making it essential for Americans to meet the April 15 deadline for their tax returns.
Those filing their 2021 returns this spring should also consider the Earned Income Tax Credit (EITC), which could provide up to $6,728.
2025 Tax Season
The tax season began on January 27, and individuals must complete and file their returns by April 15.
Failure to file by this deadline may result in penalties.
However, taxpayers who require additional time may apply for an extension, extending their deadline to October 15.
This can be accomplished by completing Form 4868, the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.
Filing can be done via mail, online through an IRS-approved e-filing partner, or with assistance from a tax professional.
While there isn’t a fixed timeline, the IRS indicated that refunds may be processed within 21 days of filing.
Be cautious to avoid errors on forms, as mistakes could lead to longer processing times.
Those filing via mail may receive their returns within a month but could experience delays as the IRS handles a large volume of returns.
As of January 31, the average refund amount was $1,928, according to the IRS.
This contrasts with the average of $1,395 recorded during the same timeframe in 2024.
The average refund for direct deposits in 2025 was even higher, amounting to $2,069, the IRS reported.
To track the status of your refund, the IRS offers an online tool called Where’s My Refund?
This tool is available within 24 hours of e-filing and typically within four weeks for paper filings.
CREDIT INCOMING
The EITC supports moderate to low-income taxpayers with children.
Again, the amount available varies based on AGI and filing status—be it single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse.
Several other requirements must also be satisfied to qualify for the EITC.
These include being a US citizen or resident alien throughout the 2021 tax year, holding a valid Social Security number, and having an investment income below a certain limit, among other factors.
Remarkably, EITC will also be accessible on the 2024 return when filed by April 15.
Certain Americans could qualify for as much as $7,830 from the EITC.
All current and previous tax forms, along with instructions, can be accessed on the IRS website via its Forms & Instructions page.
Current refund figures for millions of taxpayers who have already received them this year are roughly 32% lower than those in 2024.
There are three different options for obtaining a filing extension for those unable to meet the April 15 deadline.
