As the tax deadline approaches, the time is running out for US citizens to claim the stimulus checks of the Recovery Rebate Credit 2021. The IRS announced the special payment for taxpayers who have never claimed the pandemic-era released Economic Impact payment.
The special payment was announced in December 2024, when the IRS found out that more than 1 million taxpayers had not claimed the 2021 Recovery Rebate Credit. The agency processes the automatic payment for those who have filed the 2021 tax return but have not claimed the credit; however, people who have not filed a tax return have to claim it before this tax day.
This is the last chance for eligible taxpayers to claim their Recovery Rebate Credit up to $1400. The Recovery Rebate Credit 2021 is part of the Economic Impact Payment announced during the pandemic to U.S. citizens who have missed any EIP stimulus check or received only half the amount.
| Who qualifies? | US nationals who did not claim the 2021 Recovery Rebate credit, did not file a 2021 tax return, or did not claim credit on the 2021 tax return |
| Max. Payment | US national who did not claim the 2021 Recovery Rebate credit, did not file a 2021 tax return, or did not claim credit on the 2021 tax return |
| Deadline | 15 April 2025 |
| How to claim? | Filing 2021 tax return with 2021 Recovery Rebate claim |
| Total fund | $2.4 billion |
| When to expect? | With their tax refund |
| Official Website | https://www.irs.gov/ |
Who will receive the check?
As mentioned earlier, the Recovery Rebate Credit was initiated for citizens who have not received the full amount or half the amount of the Economic Impact payment. US citizens are wondering if they are eligible for the stimulus check 2025 under the 2021 Recovery Rebate Credit and can check the eligibility criteria:
- The credit eligibility is the same as the Economic Impact Payment; the 2021 Recovery Rebate Credit is based on 2019 or 2020 tax information.
- The taxpayers who do not qualify for the EIP or did not receive the full amount of the stimulus check may also receive the payout based on their 2021 tax information.
- You must be a US citizen or US resident alien in 2021 and not dependent on another taxpayer’s return.
- You must have a valid SSN or ATIN number, or if both you and your spouse are eligible, you both should have a valid SSN.
- If your earned income is $73,000 or less in 2021, you can file your 2021 tax return.
- You can claim the special payment if you have claimed the 2021 federal tax return in the 2022 tax season and filed $0 in the Recovery Rebate Credit section.
Claim Deadline
Taxpayers who qualify for the 2021 Recovery Rebate Credit but did not file the 2021 tax return need to file their 2021 tax return before the 2025 tax deadline, 15 April 2025. The IRS allows a one-year period for the prior year’s returns; hence, this year is the last chance for US citizens to file the 2021 tax return.
The US citizens who are not sure of their eligibility for the 2021 Recovery Rebate Credit can check their IRS online account to see if they have received the EIP payment or not, or you can check the letter 6475, or EIP notices issued in 2022 to the eligible citizens.
Payout Amount
Taxpayers who are eligible for the 2021 Recovery Rebate Credit will receive the maximum payout of $1400. The IRS has estimated that the total amount of $2.4 billion will be used to release the unclaimed credit. If the couple qualifies for the credit, they both will receive the maximum payout of $1400, totaling $2,800.
For the qualifying dependent who has a valid Social Security Number or Adoption Taxpayer Identification number, the eligible taxpayers can expect $1400 for each dependent. The amount of special amount can be reduced depending on your 2021 adjusted gross income, such as:
- If you’re married or filed the joint return or filed as a widow/widower, your credit amount may be reduced if your adjusted gross income is more than $150,000, and it can phase out if the income goes above the limit of $160,000.
- If you’re filing as the head of household or individual, your credit amount will decrease if the gross income is more than $112,500. The credit amount will phase out if the income is above the limit of $120,000.
- For others, the income limit after which the credit amount will be reduced is between $75,000 and $80,000. If it goes above the $80,000 limit, the credit amount will phase out for the taxpayer.
Steps to file
The taxpayers have only ten days to file for the 2021 tax return to claim the stimulus check of the the 2021 Recovery Rebate Credit; hence, they should choose the electronic method to file their return on time. Taxpayers can file their 2021 tax return while claiming the 2021 Recovery Rebate Credit through the following steps:
- You must prepare the 2021 income details, W-2 form, Form 1099, and other documents as per your needed tax records.
- When you are ready to file the tax returns, file them either through Direct File at https://directfile.irs.gov/ or Free File at https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free, or you can take the help of an approved tax professional.
- You should use 2021 as your assessment year fill out Form 1040 and select direct deposit as the refund payment method.
- You should attach all the gathered documents related to your claim.
- Next, review the tax return details from the tax information to the bank account details and file the tax return.
So, US citizens entitled to the 2021 Recovery Rebate Credit who do not have any income to report for the 2021 tax year should also file their 2021 tax return before the tax deadline, 15 April 2025, to receive the IRS $1400 stimulus check.