Time is running out for Americans who missed receiving their $1,400 stimulus payment from 2021, as the Internal Revenue Service warns that April 15 marks the final day to claim these funds. With approximately $1 billion in unclaimed refunds still waiting for more than 1.1 million taxpayers, financial experts emphasize the urgency of filing 2021 tax returns before the impending deadline.
Why millions of Americans might still be eligible for stimulus money
The 2021 stimulus checks were authorized under the American Rescue Plan as financial relief for individuals struggling during the COVID-19 pandemic. Despite widespread distribution, a significant number of eligible recipients never received their payments due to various factors including confusion about eligibility requirements, outdated address information, or failure to file tax returns.
For those who did not receive the $1,400 payment, filing a 2021 tax return allows them to claim the recovery rebate credit. This provision ensures that eligible individuals can still access this financial assistance despite the significant time that has passed since the initial distribution period.
Syracuse University law professor Robert Nassau, who oversees the school’s low-income tax clinic, stresses that individuals who missed out on stimulus payments are quickly running out of time to take action. As the deadline approaches, his advice becomes increasingly critical for those who may benefit from this financial relief.
How the IRS plans to distribute remaining payments
In December, the IRS announced plans to automatically send payments of up to $1,400 to eligible individuals who failed to claim the recovery rebate credit on their 2021 tax returns. According to the agency, these payments were scheduled to begin arriving via direct deposit starting in late January.
Taxpayers uncertain about whether they received a stimulus payment can create an online account with the IRS to check their tax records and verify if a payment was issued. This step can help individuals determine if they need to take further action before the April 15 deadline.
The substantial amount of unclaimed funds, $1 billion, underscores the scale of this issue and highlights how many Americans may still be missing out on financial assistance they are entitled to receive.
Filing options for meeting the April 15 deadline
For taxpayers planning to submit their 2021 return by mail, experts recommend using certified mail service to ensure proof of timely submission. Professor Nassau advises spending the additional $5 for certified mail to prevent potential disputes about whether the return was filed before the deadline.
He notes that the IRS sometimes rejects submissions received after the filing date without considering postmark dates or other factors, making this small investment in certified mail a worthwhile precaution against complications.
Several free filing options remain available for 2021 tax returns, though taxpayers should be aware that some services may not support electronic filing for prior year returns. Investigating these options promptly is essential for those hoping to meet the rapidly approaching deadline.
The ongoing importance of these payments
The relevance of these stimulus payments remains significant even three years after they were initially authorized. As Lisa Perkins, clinical professor and director at the UConn Law Tax Clinic in Connecticut, observes, the current economic climate makes these payments as important as ever for many Americans.
With rising costs for essentials like food and personal care items affecting household budgets, an additional $1,400 can make a substantial difference, particularly for individuals and families experiencing food insecurity or other financial hardships.
The ongoing impact of inflation and economic uncertainty means that receiving these funds could provide meaningful relief to eligible taxpayers who take action before the deadline.
Steps to take immediately
With April 15 rapidly approaching, taxpayers who believe they may be eligible for the 2021 stimulus payment should take immediate steps to file their tax returns. This process involves:
- Gathering necessary documentation from 2021, including income statements such as W-2s and 1099 forms
- Determining eligibility for the recovery rebate credit based on 2021 income levels
- Choosing a filing method, whether through tax preparation software, professional assistance, or paper forms
- Ensuring timely submission before the April 15 deadline, using certified mail if filing by paper
Taking these steps promptly can help eligible individuals access funds that rightfully belong to them and potentially provide significant financial relief during challenging economic times.
Beyond the deadline
While the IRS has set April 15 as the deadline for claiming 2021 stimulus payments, taxpayers should be aware of potential exceptions that might apply in special circumstances. For instance, those serving in combat zones or affected by federally declared disasters may qualify for deadline extensions.
Additionally, taxpayers who have previously filed extensions for their 2021 returns should check with tax professionals about their specific situations, as different rules may apply depending on individual circumstances.
As the deadline approaches, acting quickly remains the most reliable way to ensure eligibility for these payments without risking complications or delays that could result in permanently forfeiting these funds.
With substantial unclaimed refunds still available and economic pressures continuing to affect many households, taking advantage of this final opportunity to claim stimulus payments represents an important financial consideration for eligible taxpayers. The April 15 deadline serves as a crucial reminder that time is running out to secure these pandemic-era benefits.
