The Treasury’s Inspector General for Tax Administration, which supervises the IRS, released findings indicating that around 3 million Americans may be eligible to share in the $4.7 billion of unclaimed Recovery Rebate Credits. It’s astonishing to think that in the U.S., roughly 3 million individuals have yet to claim their federal stimulus check payment intended to mitigate the economic impact of the Covid-19 pandemic for the year 2021.
This revelation emerged from an official document released in August 2023. This document underscored the fact that as part of the American Rescue Plan, the U.S. government had rolled out over $930 billion in direct financial relief. This was executed through three distinct payments: two during the tenure of President Donald Trump – the first being $1,200 and the second $600, and a third, amounting to $1,400, under President Joe Biden.
So, how can one secure this unclaimed stimulus check?
The report from the TIGTA suggests that these 3 million Americans, who are yet to claim their stimulus, had indeed filed their taxes for 2021 but hadn’t applied for the Recovery Rebate Credit. In a move to bridge this gap, the IRS had dispatched Letter 6475 via traditional mail in January 2022. This letter informed potential recipients of their entitlement to the full $1,400 stimulus payment from the third round.
The funds channeled to qualifying Americans were a part of a full tax refund dubbed the Recovery Rebate Credit, managed by the Internal Revenue Service (IRS).
For those wishing to claim, they must fill out the pertinent section of their primary tax document related to the Recovery Rebate Credit. It’s essential to act within a three-year timeframe, or the chance will be gone forever. Hence, the final opportunity to claim this 2021 credit will be during the fiscal year of 2024, with the submission deadline being in spring 2025. Remember to have your 2021 total income details available for this procedure.
What is the eligibility criteria for claiming the unclaimed stimulus check?
To claim an unclaimed stimulus check, you must meet the eligibility criteria outlined by the IRS. The eligibility generally depends on your adjusted gross income (AGI), filing status, and the number of dependents you have.
- Adjusted Gross Income (AGI): You are typically eligible for the full stimulus check amount if your AGI is up to $75,000 for singles, $112,500 for heads of household, and $150,000 for married couples filing joint returns (irs.gov). However, the payment amounts are reduced for filers with incomes above these levels. For singles and married people filing separate returns, the payment phases out completely at an AGI of $80,000. For heads of household, the phase-out limit is $120,000, and for married couples filing jointly, it’s $160,000.
- Filing Status: Generally, if you are a U.S. citizen or U.S. resident alien and not a dependent of another taxpayer, you are eligible for the stimulus check.
- Dependents: For the third stimulus check, families are eligible for a payment for all their dependents claimed on a tax return, not just their qualifying children under 17. If you had a baby in 2021, you are eligible to claim the Recovery Rebate Credit for your new dependent.
If you have not received your stimulus payment or received less than the full amount, you may claim a Recovery Rebate Credit on your 2020 or 2021 federal tax return. If you are eligible, you must file a return to claim the credit, even if you don’t usually file a tax return.
Remember, any stimulus payments you received will reduce the amount of the credit you’re eligible for. The IRS recommends filing your tax return electronically. The tax software will help you figure your Recovery Rebate Credit.