Many Americans may have missed out on the third COVID-19 stimulus payment, which provided up to $1,400 per eligible individual.
The Internal Revenue Service (IRS) has set a final deadline of April 15, 2025, for taxpayers to file their 2021 tax returns and claim the Recovery Rebate Credit. Failing to meet this deadline will result in forfeiting the stimulus payment.
Who Might Have Missed the Third Payment?
Several groups may not have received the third stimulus payment:
- Non-Filers: Individuals who did not file a 2021 tax return.
- Under-Claimed Filers: Taxpayers who filed a 2021 return but did not claim the Recovery Rebate Credit due to confusion or oversight.
Eligibility Criteria for the $1,400 Stimulus Payment
To qualify for the $1,400 payment, taxpayers must meet the following criteria based on their 2021 tax information:
- Adjusted Gross Income (AGI) Limits:
- Single Filers: AGI not exceeding $75,000.
- Married Filing Jointly: Combined AGI not exceeding $150,000.
- Head of Household: AGI not exceeding $112,500.
- Dependents: Taxpayers with dependents may be eligible for an additional $1,400 per qualifying dependent.
Steps to Claim the Recovery Rebate Credit
Eligible individuals who have not received the payment can claim the Recovery Rebate Credit by following these steps:
- File a 2021 Federal Tax Return: Submit a 2021 tax return by April 15, 2025, even if not otherwise required to file.
- Complete the Recovery Rebate Credit Worksheet: Use the worksheet provided in the 2021 Form 1040 or 1040-SR instructions to calculate the credit.
- Enter the Credit Amount: Report the calculated credit on Line 30 of the tax return.
Automatic Payments for Certain Taxpayers
The IRS has identified approximately one million taxpayers who were eligible for the third stimulus payment but did not claim it.
In December 2024, the IRS began issuing automatic payments to these individuals, with most payments arriving by late January 2025.
These payments were sent to the bank account or address on file from the taxpayer’s 2023 tax return.
Consequences of Missing the Deadline
If the April 15, 2025, deadline is missed, taxpayers will lose the opportunity to claim the Recovery Rebate Credit for the third stimulus payment.
This means forfeiting up to $1,400 per eligible individual and any additional amounts for qualifying dependents.
Additional Considerations
- Purchasing Power: Due to inflation, the value of the $1,400 payment has diminished since its introduction in 2021.
- Filing Extensions: Taxpayers can request an extension to file their tax return, but the extension must be filed by the original deadline, and any taxes owed must still be paid by April 15 to avoid penalties and interest.
Income Limits for Stimulus Payment Eligibility
| Filing Status | AGI Limit |
|---|---|
| Single Filers | $75,000 |
| Married Filing Jointly | $150,000 |
| Head of Household | $112,500 |
Time is running out for taxpayers who missed the third COVID-19 stimulus payment. Filing a 2021 tax return by April 15, 2025, is essential to claim the Recovery Rebate Credit and receive the payment. Taxpayers are encouraged to act promptly to ensure they do not miss this final opportunity.
FAQs
Can taxpayers claim the Recovery Rebate Credit if they haven’t filed a tax return in previous years?
Yes, taxpayers can claim the credit by filing a 2021 tax return by the April 15, 2025, deadline, even if they did not file in prior years.
Will the IRS automatically send the stimulus payment to all eligible taxpayers?
No, only those identified by the IRS who did not claim the credit on their 2021 tax return will receive automatic payments. Others must file a return to claim the credit.
How can taxpayers check if they are eligible for the Recovery Rebate Credit?
Taxpayers can review their 2021 tax records and use the Recovery Rebate Credit Worksheet available in the 2021 Form 1040 or 1040-SR instructions to determine eligibility.