Time is Ticking: Claim Your $1,400 Recovery Rebate Credit Before It’s Too Late

Individuals who missed out on receiving their full Covid-19 stimulus payment in 2021 still have an opportunity to claim what is rightfully theirs. The Recovery Rebate Credit, a tax provision introduced to assist individuals in claiming missed stimulus payments, remains available. Those who qualify can receive up to $1,400 if they file their 2021 tax return by April 15, 2025. This provision targets individuals and families who were eligible but did not receive the funds during the initial disbursement.

The Internal Revenue Service (IRS) has been diligently distributing Covid-19 stimulus check money, ensuring that eligible recipients receive their due payments. However, some individuals may have been overlooked or failed to file a tax return, thereby missing the opportunity to receive the maximum benefit. The Recovery Rebate Credit serves as a remedy for such situations, enabling eligible taxpayers to claim any unreceived funds.

To qualify for the full $1,400 as a single filer, one's Adjusted Gross Income (AGI) in 2021 must be $75,000 or less. The credit begins to decrease for single incomes over $75,000 and is entirely phased out at $80,000. For those filing jointly, the phase-out range extends from $150,000 to $160,000. Additionally, dependents are eligible to receive $1,400 each, regardless of age, providing a much-needed financial boost to families.

For individuals who have yet to file a 2021 tax return, it may be worth doing so to claim the Recovery Rebate Credit. Filing a tax return allows the IRS to process the credit and either deposit it directly into the bank account associated with the taxpayer's 2023 tax return or issue it via paper check. It is crucial for individuals to ensure their banking information is current to avoid any delays in receiving payment.

The IRS has set a final deadline of April 15th for taxpayers to claim the credit. This deadline coincides with the agency's allowance to file for refunds or credits within three years of the original filing date. Consequently, it is imperative for those who qualify but have not yet filed to take action before time runs out.