Good news for the start of 2025!! The IRS has stated that Americans who did not claim the Recovery Rebate Credit in 2021 may receive an automatic reimbursement in the coming weeks.
This means you may receive up to $1,400 without having to raise a finger! If you’re not sure if you’re eligible or what you need to do, we’ll explain everything to you in a simple manner here. Go collect your money!
Okay, okay, but what is the Recovery Rebate Credit?
We’re talking about a tax break for people who didn’t receive any of the government’s economic impact payments (the well-known stimulus that we all love). If you submitted your tax return in 2021 but did not fill out the field for this credit or set it to $0 without realizing you were eligible, you may receive your money this year, and who doesn’t appreciate receiving money?
How do I know if I’m eligible?
Pay attention to your notifications because the IRS is sending these payments to people who:
- Met the income requirements in 2021 but did not claim the credit.
- Filed their return with errors in the tax credit field.
- If you meet these conditions, don’t worry: the IRS has its eye on you and the process is completely automatic.
How much money are we talking about?
The amount varies based on the case, but the maximum is $1,400 per person, as part of a $2.4 billion package that will be spread around the country. Consider what you could do with extra money in your pocket. This is especially true in January!
Best of all, do you know what it is? You will not have to do anything because the payments are automatic; if you qualify, the money will be deposited straight into the bank account used to file your return; if not, a check will be mailed to you.
What if I didn’t file taxes in 2021?
You still have time to claim this benefit! The deadline to file your 2021 return and request the Recovery Rebate Credit is April 15, 2025. Yes, you read that right: you still have time.
To catch up on your taxes, follow these four steps:
- Go to the IRS website (click here)
- Download the 2021 tax return form
- Complete your return including the credit, don’t forget it!!
- Send it all before the deadline
When will the money arrive?
The initial payments were sent in December, so everyone should have money in their bank accounts by the end of January. Furthermore, the IRS has committed to delivering an informative notification outlining the amount of money each recipient will receive and how the payment will be processed in each case.
If you do not receive anything (that is, if you have not seen anything in your bank account by February 2025), check the information you provided to the IRS to ensure that everything is correct, then contact the IRS to report the problem and have it resolved as soon as possible.
Don’t pass up this opportunity to claim money owed to you and get a head start on 2025!