How to Claim the Recovery Rebate Credit
To claim the Recovery Rebate Credit, file your 2021 tax return and include the amount of the third stimulus payment you received on the form. If you didn’t receive the full amount or missed out on previous payments, you may be eligible for a credit. Ensure to check your IRS account for your payment history. Complete the relevant section on your tax return (Form 1040 or 1040-SR) to claim the credit before the deadline.
The clock is ticking for millions of Americans who may still be eligible to claim the Recovery Rebate Credit (RRC). If you missed out on the Economic Impact Payments during the COVID-19 pandemic, this could be your last opportunity to receive what you’re owed. Here’s everything you need to know about this crucial benefit—and why you need to act now.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was introduced as part of the federal government’s response to the economic challenges of the COVID-19 pandemic. It is designed to provide financial relief to individuals and families who may not have received their full Economic Impact Payments (stimulus checks) in 2020 or 2021.
If you didn’t receive the full amount of stimulus payments or didn’t receive them at all, you may be eligible to claim this credit by filing your 2021 tax return.
Why Can’t You Claim the 2020 Credit Anymore?
The deadline to claim the Recovery Rebate Credit for 2020 has passed. Taxpayers had until April 18, 2024, to file or amend their 2020 tax returns to claim any missing Economic Impact Payments for that year. Unfortunately, the IRS does not allow claims for tax refunds or credits after the three-year statute of limitations has expired. However, you can still claim the Recovery Rebate Credit for 2021, which may help you recover any payments you missed during that year.
How Much Can You Receive?
Eligible taxpayers can receive up to $1,400 per individual. For a family of four, this could mean as much as $5,600.
The amount of your credit depends on several factors, including:
- Your income level: The credit amount phases out for higher-income earners. For single filers, the phase-out starts at an adjusted gross income (AGI) of $75,000, and the credit is completely phased out at $80,000. For married couples filing jointly, the phase-out range is $150,000 to $160,000. For heads of household, the range is $112,500 to $120,000. Low-income earners, including those with no taxable income, can qualify for the full credit amount as long as they meet the other eligibility criteria.
- The number of eligible dependents you have: Dependents include children under the age of 17 and certain other qualifying individuals, such as older adults or disabled relatives who meet IRS dependency requirements. Each eligible dependent can significantly increase your credit amount.
- Whether you already received partial payments: If you received a portion of the Economic Impact Payments but not the full amount, you may still qualify for the remaining balance through the Recovery Rebate Credit. This often occurs due to changes in income, marital status, or the addition of a new dependent since the last stimulus payment.
Is There an Age Restriction?
No, there is no age restriction for claiming the Recovery Rebate Credit. Both children and adults can qualify, as long as they meet the dependency and other eligibility criteria. For example, newborns in 2021 who were not accounted for in previous Economic Impact Payments may make their families eligible for additional credits. Older adults, including retirees and Social Security beneficiaries, can also claim the credit if they did not receive their full payments.
Who Should Pay Attention?
This announcement is particularly important for non-filers and individuals who haven’t yet submitted their 2021 tax returns. Non-filers often include:
- People with little or no income who are not required to file taxes.
- Older adults on Social Security.
- Individuals experiencing homelessness.
If you fall into one of these categories or know someone who does, it’s vital to take action now.
Deadline to Claim the Credit
The IRS has set a firm deadline of April 15, 2025, for taxpayers to file their 2021 tax returns and claim the Recovery Rebate Credit. While this may seem like plenty of time, delays in filing could result in missed opportunities, especially if paperwork or documentation issues arise.
How to Claim the Credit
- File Your 2021 Tax Return: You must file a federal tax return for 2021, even if you are not typically required to file.
- Use IRS Free File or Professional Help: For those with simple returns, IRS Free File tools can be used to submit your claim. If your situation is more complex, consider seeking professional tax preparation services.
- Double-Check Your Information: Ensure all personal and financial details are accurate to avoid processing delays.
Why This Matters
The Recovery Rebate Credit isn’t just free money; it’s a chance to stabilize your financial situation and recover from the economic fallout of the pandemic. Missing out means leaving money on the table that could help cover essential expenses like housing, food, or medical bills.
Spread the Word
If you’ve already filed and claimed your Recovery Rebate Credit, take a moment to share this information with friends, family, or neighbors who may not be aware. Many non-filers remain unaware of their eligibility, and your outreach could make a significant difference.
Act Now—Before It’s Too Late
The Recovery Rebate Credit is a lifeline for those who missed out on previous payments. Don’t let this opportunity slip away. Gather your documents, file your 2021 tax return, and ensure you receive the financial support you’re entitled to before the April 15, 2025, deadline.
If you want to know how we can help you claim your 2021 stimulus check, chat, email, call or set an appointment to speak with White Buffalo Tax Expert.
Reference: IRS reminds eligible 2020 and 2021 non-filers to claim Recovery Rebate Credit before time runs out