As the nation continues to recover from the economic impact of the COVID-19 pandemic, many individuals may be surprised to learn that the IRS still holds unclaimed stimulus checks. Stimulus checks are intended to provide immediate economic relief while also encouraging spending during times of limited economic spending. If you haven’t received your stimulus check or think you might be eligible for additional payments, you may be in for a much needed year-end surprise.
Understanding Stimulus Checks and Eligibility
Stimulus checks are usually distributed on an ad-hoc basis during period of economic difficulty. Recently, batched of stimulus checks were distributed in multiple rounds as part of the federal response to the COVID-19 crisis. The IRS issued three major rounds of payments: the first in March 2020, the second in December 2020, and the third in March 2021. Each round had specific eligibility criteria based on income, family size, and tax filing status.
If you did not receive a payment during these rounds or if you believe you are entitled to more money due to changes in your financial situation, you may still be eligible to claim your check despite it being close to four years since they were released. The IRS allows individuals to file for unclaimed payments through their tax returns. It’s important to note that even if you don’t typically file taxes, you may still qualify for a stimulus payment.
How to Claim Your Unclaimed Stimulus Check
Claiming your unclaimed stimulus check can be done easily, but it does require some specific steps. Note that you can no longer claim for the 2020 Recovery Rebate Credit but you can still claim for the 2021 Recovery Rebate Credit. THE IRS has said that you may make a claim on the credit up until April 15th, 2025. If you are eligible, you will need to file a tax return to claim the rebate even if you do not usually file taxes because your income is too low.
Before filing your taxes preemptively, first ensure that you are eligible to claim. The IRS provides a helpful tool on its website called the “Get My Payment” portal, which allows you to check the status of your payments. If you believe you missed a payment, review the eligibility criteria for the rounds of stimulus checks issued. If you believe that you are missing a payment, you need to file a federal tax return. You can file your return electronically or by mail.
If you are filing for the 2023 tax year, you can claim the Recovery Rebate Credit on your tax return. This credit can help you receive any outstanding stimulus payments you may be owed. Ensure all income and household information is accurate to facilitate a smooth process. The credit would either increase your tax refund or reduce the amount of taxes owed
The IRS recommends VITA to assist with the process
If you are struggling to file your tax return, the IRS recommends that you use the Volunteer Income Tax Assistance program, also known as VITA. You can access VITA via the following link: https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers. You can also consult a tax professional to assist you in receiving your owed benefit.
To claim the Recovery Rebate Credit, individuals must be American citizens or be documented resident aliens in the relevant tax year. You may not be claimed as a dependent by another taxpayer, and you must have a Social Security number valid for employment that was issued before the tax return’s due date (including extensions). While admin and paperwork to file for rebates may seem confusing, it is important that if you are entitled to a rebate you do ensure that you receive it in order to assist your finances.
