The Recovery Rebate Credit, a refundable credit, applies to those who missed one or more Economic Impact Payments (EIPs), commonly referred to as stimulus payments.
While the IRS reports that most eligible taxpayers have already received their payments or credits, those who have yet filed their 2021 tax returns may still qualify.
The Internal Revenue Service (IRS) announced plans in December 2024 to automatically issue payments to individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns.
Eligible taxpayers must file their returns and claim the Recovery Rebate Credit by the April 15, 2025, deadline. Payments will vary depending on individual circumstances, with a maximum payment of $1,400 per person.
The IRS estimates the total payments to amount to approximately $2.4 billion.
The IRS estimates that more than $1 billion in refunds remain unclaimed by taxpayers who have not filed their Form 1040, Federal Income Tax Return, for the 2021 tax year.
The revenue collection agency estimates the median refund amount is $781 for 2021. This estimate does not include the Recovery Rebate Credit or other credits that may be applicable.
Under the law, taxpayers usually have three years to file and claim their tax refunds. If they don’t file within three years, the money becomes the property of the U.S. Treasury.
The three-year deadline of April 15, 2025, is quickly approaching! Here are more resources online from the IRS.
Earlier this year, President Donald Trump expressed support for the idea of returning a portion of savings from Elon Musk’s Department of Government Efficiency (DOGE) to U.S. citizens as a form of dividend.
Trump stated that his administration is exploring a proposal to allocate 20% of the savings generated by DOGE’s cost-cutting measures to American citizens, with an additional 20% directed toward reducing the national debt.
More information from the IRS can be found online.
