SELECT Americans could lose out on $1,400 checks in just days unless they take the necessary steps to claim them.
This funding is part of stimulus checks that approximately 1.1 million taxpayers have yet to receive.
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A Recovery Rebate Credit was introduced in 2021 as part of a relief initiative following the peak of the coronavirus pandemic.
The Internal Revenue Service (IRS) distributed these payments to assist working Americans affected by restrictions, closures, social distancing, and various other challenges.
Three rounds of Economic Impact Payments, also known as stimulus checks, were part of the Recovery Rebate Credit.
The window to claim funds from the first two rounds has closed, and the deadline for the third round is approaching quickly.
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Only those who did not file their 2021 tax return and thus missed out on the third round can still receive the additional estimated $1,400.
To claim it, they must submit their 2021 tax return (in addition to the 2024 return) by April 15, 2025.
The $1,400 is also a refundable credit.
This means it will be applied to any outstanding tax balance or issued as a refund if no amount is owed.
RESULTS WILL VARY
It’s crucial to remember that the exact credit amount will vary based on adjusted gross income (AGI).
For instance, married couples filing jointly with a total AGI not exceeding $150,000 in 2021 could receive up to $2,800 instead.
However, those with an income of $160,000 or more will not qualify.
Dependents are also eligible for the $1,400, regardless of their age.
The IRS estimates that approximately $1 billion in refunds and credits remain unclaimed from 2021, underscoring the importance for Americans to file their tax return by the April 15 deadline.
Individuals filing their 2021 tax returns this spring should also be alert for the Earned Income Tax Credit (EITC), which can provide up to $6,728.
2025 Tax Season
The tax season began on January 27, and returns must be filed by April 15.
Failure to meet this deadline may result in penalties.
However, taxpayers who require additional time can request an extension, allowing them until October 15.
The process involves filling 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 through an IRS e-filing partner, or with the assistance of a tax professional.
While there isn’t a fixed timeline, the IRS states that most taxpayers receive refunds within 21 days of filing.
It’s essential to avoid errors on any forms, as mistakes can lead to delays.
Taxpayers who file by mail may wait about a month for their returns or could experience longer delays due to the IRS processing millions of submissions.
As of January 31, the average refund amount was $1,928, according to the IRS.
This is compared to the average of $1,395 for the same timeframe in 2024.
The average direct deposit refund for 2025 was reported even higher, at $2,069, as stated by the IRS.
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 updates within four weeks for paper returns.
CREDIT INCOMING
The EITC is designed to benefit moderate to low-income taxpayers with children.
Again, the amount received is based on AGI and filing status—whether single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse.
Several additional criteria must be met to qualify for the EITC.
These include being a U.S. citizen or resident alien for the entire 2021 tax year, holding a valid Social Security number, and having investment income below a specific threshold, among others.
It’s worth noting that the EITC can also be claimed on the 2024 return when filed by April 15.
Some taxpayers may receive up to $7,830 from the EITC.
All current and past tax forms, along with their instructions, are accessible on the IRS website via its Forms & Instructions page.
The current refund amounts for millions of Americans who have received them this year are approximately 32% lower than those in 2024.
There are also three ways to request a filing extension for those unable to meet the April 15 deadline.
