Millions of Americans may still be entitled to receive up to $1,400 from the third Economic Impact Payment issued under the American Rescue Plan Act. The IRS announced special payments going this month to 1 million taxpayers who did not claim 2021 Recovery Rebate Credit; encourages non-filers about approaching deadline to claim credits. If you missed your full stimulus payment in 2021, you have until April 15, 2025, to file a 2021 tax return and claim what you’re owed through the Recovery Rebate Credit.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable tax credit that allows eligible individuals to claim any portion of the third Economic Impact Payment they didn’t receive in 2021. If you didn’t get the full amount of the third Economic Impact Payment, you may be eligible to claim the 2021 Recovery Rebate Credit and must file a 2021 tax return – even if you don’t usually file taxes – to claim it.
This credit was designed to help people who:
- Never received their stimulus payment
- Received only a partial payment
- Became eligible after 2021 due to changed circumstances
Automatic Payments in 2025
No action is needed for eligible taxpayers to receive these payments, which will go out automatically in December and should arrive in most cases by late January 2025. The IRS identified approximately 1 million taxpayers who filed 2021 returns but missed claiming the Recovery Rebate Credit when they were eligible.
Eligibility Requirements
To qualify for the Recovery Rebate Credit, you must meet these criteria:
Basic Eligibility
- Be a U.S. citizen or legal resident
- Have a valid Social Security number
- Cannot be claimed as a dependent on someone else’s 2021 tax return
- Must not be a nonresident alien
Income Thresholds
| Filing Status | Full Payment if Income Under | Payment Phases Out |
|---|---|---|
| Single | $75,000 | $80,000 |
| Head of Household | $112,500 | $120,000 |
| Married Filing Jointly | $150,000 | $160,000 |
Payment Amounts
The maximum Recovery Rebate Credit amounts are:
- $1,400 per eligible individual
- $1,400 per qualifying dependent
- $2,800 for married couples filing jointly
Who Missed Their Payment?
Several groups of people commonly missed their stimulus payments:
Non-Filers
Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent.
Changed Circumstances
- Individuals who turned 18 in 2021
- People who got married or divorced
- Those who had new dependents
- Individuals who moved or changed banking information
Processing Errors
- Incorrect mailing addresses
- Closed bank accounts
- IRS processing errors
How to Claim Your Recovery Rebate Credit
Step 1: File Your 2021 Tax Return
The IRS also reminded taxpayers who haven’t filed 2021 tax returns they might be eligible as well, but they face an April 15, 2025, deadline to file their returns to claim the credit.
Filing Options:
- IRS Free File (for incomes $73,000 or less)
- Commercial tax software
- Professional tax preparers
- Volunteer Income Tax Assistance (VITA)
Step 2: Calculate Your Credit
Use IRS Online Account to determine how much you previously received in Economic Impact Payments. To calculate the amount of Recovery Rebate Credit, taxpayers may access their IRS Online Account to determine the amount they received in Economic Impact Payment(s).
Step 3: Complete Form 1040
The Recovery Rebate Credit is claimed on Line 30 of Form 1040 or Form 1040-SR.
Payment Distribution and Timeline
Automatic Payments
| Payment Method | Details |
|---|---|
| Direct Deposit | The payment will be sent to the bank account listed on the taxpayer’s 2023 tax return |
| Paper Check | Sent to address on file if direct deposit unavailable |
| Processing Time | Payments began December 2024, arriving by late January 2025 |
Filed Returns
For taxpayers who file 2021 returns to claim the credit:
- Electronic filing: 4-6 weeks processing
- Paper filing: 6-8 weeks processing
- Direct deposit recommended for faster receipt
Important Deadlines and Warnings
Critical Deadline
April 15, 2025 – This is the final deadline to file a 2021 tax return and claim the Recovery Rebate Credit. The deadlines to file a return and claim the 2020 and 2021 credits are May 17, 2024, and April 15, 2025, respectively.
Common Mistakes to Avoid
| Mistake | Consequence |
|---|---|
| Filing wrong tax year | Must file 2021 return specifically |
| Missing the deadline | Credit permanently forfeited |
| Skipping the credit section | No payment received |
| Providing incorrect payment information | Delayed processing |
Protection Against Scams
Legitimate IRS Contact
The IRS has issued all first, second and third Economic Impact Payments. You can no longer use the Get My Payment application to check your payment status.
The IRS will NEVER:
- Call, email, or text requesting personal information
- Ask for payment to process your credit
- Request Social Security numbers via phone
- Use third-party companies for processing
Official Resources:
- IRS.gov – Check refund status
- IRS Online Account – Verify payment amounts
- 1-800-829-1040 – Official IRS helpline
Impact on Federal Benefits
Any Recovery Rebate Credit received does not count as income when determining eligibility for federal benefits such as Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF).
Recovery Rebate Credit by State
State-Specific Considerations
| State Category | Tax Implications |
|---|---|
| No State Income Tax | No additional state filing required |
| State Conforms to Federal | May need to file state return |
| State-Specific Rules | Consult state tax authority |
Special Circumstances
Amended Returns
If you already filed a 2021 return but missed claiming the credit, you may need to file Form 1040-X (Amended U.S. Individual Income Tax Return).
Military Personnel
Active duty military personnel and their families may have special considerations for Recovery Rebate Credit eligibility.
Deceased Taxpayers
The 2020 RRC and 2021 RRC can be claimed for someone who died in 2021 or later.
Frequently Asked Questions
What is the Recovery Rebate Credit?
It’s a refundable tax credit allowing you to claim unpaid third-round stimulus payments from 2021 by filing a 2021 tax return.
How much can I receive?
Up to $1,400 per eligible individual and $1,400 per qualifying dependent, subject to income limitations.
Can I claim the credit with no income?
Yes, you can file a 2021 return and claim the credit even if you had minimal or no income that year.
The Recovery Rebate Credit represents a final opportunity to claim stimulus payments you may have missed. With the April 15, 2025 deadline approaching, time is running out to file your 2021 tax return and secure these payments. Whether you never filed in 2021 or missed claiming the credit, acting now could put up to $1,400 (or more for families) in your pocket.
