IRS gives last chance for $1,400 stimulus payment – claim it before April 2025 deadline!
The US Internal Revenue Service (IRS) has recently announced a special initiative under which automatic payments will be sent to eligible citizens who did not claim the Recovery Rebate Credit in their 2021 tax returns.
Why was this decision taken?
After reviewing its internal data, the IRS found that there are many eligible taxpayers who filed their tax returns but did not claim the Recovery Rebate Credit. This special step has been taken to give such people their missed stimulus payment.
What is Recovery Rebate Credit?
It is a refundable tax credit given to those who were deprived of the earlier economic relief payment (Stimulus Payment).
If you filed your tax return in 2021 but did not claim the stimulus payment, the IRS will now automatically send this payment to your bank account as a direct deposit or mail it as a paper check. A separate letter will also be sent to confirm the payment.
How much money will be received?
Under this scheme, eligible individuals will be given a maximum of $1,400 per person. It is estimated that the government will distribute a total amount of $2.4 billion.
Important Deadline – April 15, 2025
For taxpayers who have not yet filed their 2021 tax returns, the last chance is till April 15, 2025. If you file your return before this date, you may also be eligible for any other tax refund apart from the Recovery Rebate Credit.
Who is eligible?
- It is mandatory to be a legal resident of the US.
- You must have a valid Social Security number (SSN) or ATIN.
- You must not be claimed as a dependent on someone else’s tax return.
The IRS is advising those who have not yet done so to file their 2021 tax returns as soon as possible. If you had little or no income, you can still receive this payment by filing a return.
Frequently Asked Questions (FAQs)
What is the Recovery Rebate Credit?
This is a tax credit for those who missed out on earlier stimulus payments.
How much will the stimulus payment be?
Eligible individuals will receive a maximum of $1,400 per person.
What is the deadline to claim this credit?
You must file your 2021 tax return by April 15, 2025.