In the United States, the Recovery Rebate Credit of 2021, also known as the stimulus check, is a US Internal Revenue Service (IRS) program designed to provide financial assistance to eligible taxpayers.
If you did not receive the full third Economic Impact Payment, you can claim up to $1,400 in credit on your 2021 tax return. The primary goal is to ensure that all qualified citizens receive the financial assistance they are entitled to.
The IRS recently announced that it would make additional automatic payments, known as special payments, to approximately one million taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. These are stimulus checks.
The goal of these payments, which total around $2.4 billion, is to ensure that people who did not claim the credit receive the correct amount without having to take any additional action.
Who is eligible to get this Stimulus check?
In order to qualify for the 2021 Recovery Rebate Credit, one must fulfill the requirements set forth by the IRS:
- Valid Social Security Number (SSN): Prior to the filing date of the 2021 tax return, the taxpayer and any dependents they may have claimed must have a valid SSN.
- Not a dependent: The taxpayer must not have been claimed as a dependent on another person’s tax return for the year 2021.
- Income within established limits: The amount of the credit begins to be reduced for individuals with adjusted gross income (AGI) over $75,000, heads of household with AGI over $112,500, and married couples filing jointly with AGI over $150,000.
It is important to remember that if an individual meets the other requirements, they may still be eligible for the credit despite having little or no income.
Individuals who passed away in 2021 or 2022 but did not receive the third Economic Impact Payment may still be eligible for the stimulus check credit if they met the requirements prior to their death.
How to get the stimulus check?
Even if they are not required to, taxpayers must file a 2021 tax return to claim the 2021 Recovery Rebate Credit. The IRS Free File program offers free alternatives for preparing and filing electronic returns.
The fastest way to receive a refund is to file electronically and select direct deposit to a bank account, prepaid debit card, or mobile app.
To be eligible for the credit and any other refunds, taxpayers must file their 2021 tax returns by April 15, 2025. To avoid payment delays, it is best to file your return as soon as possible.
If a taxpayer makes an error when calculating the credit on their 2021 return, the IRS will automatically correct the amount and notify them of any changes, so no updated return is required.
In all of these cases, taxpayers who did not receive the full amount of stimulus payments can claim the 2021 Recovery Rebate Credit, also known as the “stimulus check.” To receive this benefit, you must meet the eligibility requirements and submit the required tax return by the deadline.
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