If you qualified for the third stimulus check in 2021 but didn’t claim it, here’s some good news: the IRS is issuing checks of up to $1,400 to over 1 million taxpayers who were eligible but didn’t claim the credit on their 2021 tax returns.
The third stimulus payment was part of a series of pandemic-era relief measures aimed at supporting Americans during the global crisis. While most eligible taxpayers received their payments, some missed out due to errors or omissions on their 2021 tax returns.
Now, the IRS is stepping in to ensure eligible individuals get the money they deserve.
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A Quick Recap of the Stimulus Payments
Between 2020 and 2021, the government issued three rounds of stimulus payments:
- First Stimulus Check: Up to $1,200, distributed in early 2020.
- Second Stimulus Check: Up to $600, sent out in early 2021.
- Third Stimulus Check: Up to $1,400, rolled out later in 2021.
In total, over 476 million payments were issued, amounting to more than $800 billion.
Who Is Eligible for This $1,400 Payment?
While most taxpayers received their third stimulus checks, some didn’t claim the Recovery Rebate Credit on their 2021 tax returns. If this applies to you, here’s how you may qualify:
- Missed or Incorrect Filing: If you filed your 2021 tax return but left the Recovery Rebate Credit field blank or incorrectly filled it as $0, you’re eligible.
- Didn’t File in 2021: If you were eligible for the credit but didn’t file a 2021 tax return, you can still claim it by filing your 2021 taxes by the April 15, 2025, deadline.
Good news: You don’t need to file an amended return to receive the payment. The IRS is automating the process to make it easier.
When Will You Receive Your Payment?
The IRS has announced that payments will be distributed by late January 2025, with automatic processing starting in December 2024.
IRS Commissioner Danny Werfel reassured taxpayers, stating, “We’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
How Will You Get Paid?
The IRS will use the information on your most recent tax return to issue your payment:
- Direct Deposit: Payments will be sent to the bank account listed on your 2023 tax return.
- Check by Mail: If no bank account is on file, or if your listed account is closed, the payment will be sent to your address of record.
Additionally, the IRS will mail a letter notifying you about the payment. If your direct deposit fails (e.g., due to a closed account), the payment will automatically be redirected as a paper check to your address.
What Should You Do Now?
- Check Your Tax Records: Review your 2021 tax return to ensure you didn’t miss claiming the Recovery Rebate Credit.
- Update Your Information: Make sure your address and bank account details are current with the IRS.
- File Your 2021 Tax Return (If You Haven’t Already): You have until April 15, 2025, to file your 2021 taxes and claim the credit if you’re eligible.
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Stay Prepared
This unexpected payment could provide a financial boost for many. Don’t miss out—check your eligibility and ensure your tax records are up to date.
For more tips on managing your taxes, check out our end-of-year tax checklist and learn how to maximize your refunds with smart tax strategies.
