People who did not get the $1,400 from the third stimulus checks plan could still use the 2021 American Rescue Plan. There is good news: The IRS will take claims until April 15, 2025. This is true even if you did not file taxes that year or if you got money from Social Security or another benefit.
The Recovery Rebate Credit is the key. This credit covers not only you but also people who depend on you, like college students or grandparents who live with you. A lot of people do not know that these groups are now eligible, which could mean hundreds or even thousands of extra dollars. But taxpayers need to act quickly.
Hurry up: you’ve got to claim your stimulus check ASAP
How eligible you are will depend on your adjusted gross income (AGI) for 2021. It is $75,000 for single people and $150,000 for couples. If you spend more than these limits, the credit is slowly taken away until it is gone.
For instance, if you made $78,000 as a single person, you will only get a small part of that amount. There is nothing after you reach $80,000.
Not turned in your taxes for 2021? Not a problem. You can file your tax return for free with IRS Free File, even if you did not make any money. Pick direct deposit to get things done faster.
The IRS has sent payments to 1 million people automatically since December of last year. If you are not on that list, you need to file a claim.
Errors that could cost you the tax refund
A common misunderstanding is that you can not get benefits like SNAP or SSI. Not true: These payments do not change your eligibility.
Another myth is that adults who depend on you do not count. Add $1,400 for each person who is in charge who is a college student or has a disability. To be sure of your amount, look at IRS Letter 6475 or your online account.
It is also hard to keep track of deadlines. Some people think that since they will not be working in 2021, they should not state anything. The truth is that the IRS can not process your credit without that statement. Be careful, too. If they message you offering payment, it is probably a scam. The agency never texts to start a conversation.
Case studies: how much could you receive?
Let us say that in 2021, a couple with two kids had an AGI of $145,000. They could claim 5,600 when they filed (1,400 for each adult and dependent).
The credit is taken away if your AGI was $160,000 or more. If you are retired and have income that is not taxed, all you have to do is send in your return along with information about your benefits to get the full amount.
You can still fix your 2021 tax return with Form 1040-X if you forgot to include the credit when you sent it in. Yes, but this process takes longer, so do it quickly. You can also get help from a tax professional if you have questions, especially if you have non-traditional dependents.
Key tools to avoid getting left behind
You can find credit calculators and step-by-step guides on the IRS website. If you use IRS Free File, the system will show you how to do it. Would you like help in person? Some community centers help people for free. Just make sure you have your W-2, 1099, or proof of social benefits for 2021 ready.
One important thing to keep in mind is that the IRS has started sending automatic payments, but this is only for people who have already filed their 2021 tax return but forgot to claim the credit. The money will not show up on its own if you never sent it. You need to do something before April 20, 2025, when the deadline runs out.
Don’t wait any longer: Claim your stimulus check now
April 15 is coming up soon, in less than two weeks. The IRS thinks that $2.4 billion has not been claimed yet. Those funds will be lost after the due date. This money could help a lot of families pay off debts, pay for medical bills, or deal with emergencies. Every dollar counts, even if you think it is not much.
Do not wait until the last minute. Online systems could get too busy, and a mistake in the code could ruin your chance. If you mail your return, use a certified service so you can prove it was delivered. Do not forget that there will be no more extensions or exceptions after 2025.