As we move into the new year, some people may be getting a new stimulus payment. During the COVID-19 pandemic, the US government gave out a variety of stimulus checks and rebates to help families who were having a hard time paying their bills while they were out of work and to encourage spending in the economy to avoid a recession. You can still get one of the credits now, even if you did not in 2021.
Claim your $1,400 recovery rebate credit
During the pandemic, households got three payments to help them get through it. As part of the American Rescue Plan Act, people who were eligible could get the Recovery Rebate Credit and receive $1,400 for each adult and $1,400 for each child in March 2021.
The American Rescue Plan was a US$1.9 trillion bill that was passed by Congress and signed into law on March 11, 2021, by President Joe Biden. The bill was meant to help the country get back on its feet faster after the COVID19 pandemic hurt its economy and health.
Recovery Rebate Credits were given out by the IRS in December 2024 to people who were eligible but did not claim their credit on their 2021 tax returns. Also, some people got less than what was fully owed to them at the time. Additionally, that mistake will be fixed for these people to make sure they get the full $1,400 they are entitled to.
No further action needed by eligible recipients
You do not need to do anything else if you are eligible for the unclaimed Recovery Rebate Credit. You will get the money right away from the IRS. Some phishing scammers know that the IRS is releasing these funds and are trying to get people to give them their personal financial information by saying they are the IRS and need it to give you the credit.
In a statement released in December 2024, IRS Commissioner Danny Werfel said, “To make this process easier and make sure that this money goes to those who need it, we are making these automatic payments. This means that taxpayers will not have to file an amended return to receive it.”
How to track your refund status
If you think you are owed the recovery rebate credit, the IRS suggests that you use their “Where is My Refund?” tool to find out where your refund is. You will need to know the following things in order to use the tool:
- Your Social Security number or Individual Taxpayer Identification Number (ITIN)
- Marital status
- The exact amount of the refund on your return
When you use the tool, it will tell you where your refund is at three different stages:
- “Return received: We have received your return and are processing it.”
- “Refund approved: We have approved your refund and are preparing to issue it on the date indicated.”
- “Refund sent: We sent the refund to your bank or to you by mail. It may take up to 5 days for it to appear in your bank account or several weeks for your check to arrive in the mail.”
Looking after your financial wellbeing
Even though stimulus payments like the Recovery Rebate Credit can help you out financially right away, you should still keep an eye on your money and stick to your budget.
Make sure you are in charge of your money and do not spend more than you can afford. This will help your finances in the long run and reduce your stress.
Many experts say that you should start investing your money if you do not know how to make your money last longer. To make sure you can retire comfortably and without stress about money, you need to beat inflation and start taking advantage of the power of compound interest as soon as possible.
Also See:- $725 Stimulus Payment Eligibility: Who Will Receive the February 2025 Deposit This Week?
