As we enter a new year, some individuals might still have an opportunity to receive a stimulus payment. During the COVID-19 pandemic, the U.S. government issued several rounds of stimulus checks to help struggling families cover expenses and boost the economy. If you missed out on one of these payments in 2021, you may still be eligible to claim the Recovery Rebate Credit.
Recovery
The Recovery Rebate Credit was introduced as part of the American Rescue Plan Act in March 2021. This economic relief package, valued at $1.9 trillion, aimed to help individuals and families recover from the financial hardships caused by the pandemic. Under this plan, eligible tax filers could receive $1,400 per individual and an additional $1,400 per qualifying child.
However, not everyone claimed their credit when they filed their 2021 taxes. Some individuals also received less than what they were entitled to. To address this, the IRS started releasing unpaid credits in December 2024, ensuring that those who missed out can finally receive their full payment.
Automatic
If you qualify for the unclaimed Recovery Rebate Credit, there’s good news: you don’t need to take any action. The IRS is automatically processing payments, so you won’t have to file an amended return or submit any additional paperwork.
However, with this automatic distribution, scammers have also taken notice. Some fraudsters are posing as IRS representatives, attempting to trick individuals into providing personal and financial information. The IRS has made it clear that it will never request sensitive details via phone, email, or text. If you receive a suspicious message claiming to be from the IRS, be cautious and avoid sharing any personal data.
Tracking
If you believe you are eligible but have not yet received your credit, you can track your payment status using the IRS’s “Where’s My Refund?” tool. To use the tool, you’ll need the following details:
- Your Social Security number or Individual Taxpayer Identification Number (ITIN)
- Your filing status (single, married, head of household, etc.)
- The exact amount of the refund on your tax return
Once you enter the required information, the tool will display one of three statuses:
| Refund Status | Meaning |
|---|---|
| Return received | The IRS has received your tax return and is processing it. |
| Refund approved | Your refund has been approved and is being prepared for issuance. |
| Refund sent | Your payment has been sent to your bank or mailed, and should arrive soon. |
If your refund status says “sent” but you haven’t received the money, allow a few extra days for it to appear in your bank account or arrive by mail.
Financial
While receiving a stimulus payment can provide short-term relief, it’s crucial to focus on your long-term financial well-being. Proper budgeting, saving, and investing are essential to maintaining financial stability.
If you’re unsure where to start, consider setting aside a portion of your rebate for an emergency fund or investing in assets that will grow over time. Many financial experts recommend taking advantage of compound interest as early as possible to build wealth and secure your future.
Even though this may be one of the last pandemic-related stimulus payments, staying informed about government relief programs and tax credits can help you maximize your financial opportunities. If you believe you qualify for the Recovery Rebate Credit, keep an eye on your bank account or tax transcript to ensure you receive the funds you’re entitled to.
FAQs
Who qualifies for the Recovery Rebate Credit?
Anyone who did not receive their full stimulus payment in 2021 may qualify.
How much is the Recovery Rebate Credit?
Eligible individuals receive $1,400 per filer and $1,400 per qualifying child.
Do I need to apply for the credit?
No, the IRS is automatically sending payments to eligible individuals.
How can I check my payment status?
Use the IRS ‘Where’s My Refund?’ tool with your tax details.
What should I do if I suspect a scam?
Ignore messages requesting personal info and report them to the IRS.
