The Internal Revenue Service (IRS) has announced plans to automatically issue payments to individuals who did not claim the Recovery Rebate Credit (RRC) on their 2021 tax returns. This credit applies to taxpayers who missed one or more Economic Impact Payments (EIPs), commonly known as stimulus checks.
With the April 15, 2025, filing deadline quickly approaching, eligible taxpayers still have time to claim their refunds and stimulus-related credits. The IRS estimates that over $1 billion in tax refunds for 2021 remains unclaimed, and the Recovery Rebate Credit could provide up to $1,400 per person for those who qualify.
Who Qualifies for the Recovery Rebate Credit?
The Recovery Rebate Credit was designed for taxpayers who did not receive their full third-round stimulus payment in 2021. You may be eligible if you:
- Did not receive the full $1,400 Economic Impact Payment (EIP) in 2021
- Had a lower income in 2021 compared to prior years, making you newly eligible
- Added a dependent in 2021, such as having a child or taking care of a qualifying relative
- Did not file a 2021 tax return yet, meaning the IRS has no record of your eligibility
The maximum payment is $1,400 per eligible person, including dependents. Payments will vary based on income, filing status, and dependents claimed.
Income Limits for the Recovery Rebate Credit
| Filing Status | Full Credit if AGI is Below | Phase-Out Range | No Credit if AGI Exceeds |
|---|---|---|---|
| Single | $75,000 | $75,000 – $80,000 | $80,000+ |
| Married Filing Jointly | $150,000 | $150,000 – $160,000 | $160,000+ |
| Head of Household | $112,500 | $112,500 – $120,000 | $120,000+ |
If you fall within the phase-out range, you may receive a partial payment. If your income exceeds the limits, you do not qualify for the Recovery Rebate Credit.
How to Claim the Recovery Rebate Credit
To receive the $1,400 payment, eligible taxpayers must file a 2021 tax return by April 15, 2025 and complete the following steps:
- Check IRS Records
- Confirm if you already received the full stimulus payment by reviewing IRS Notice 1444-C or checking your bank statements from 2021.
- File a 2021 Tax Return
- If you have not filed yet, you must submit Form 1040 (Individual Income Tax Return) by the April 15, 2025 deadline.
- If you already filed but forgot to claim the credit, you can submit Form 1040-X (Amended Tax Return).
- Claim the Credit on Line 30 of Form 1040
- The Recovery Rebate Credit is claimed on Line 30 of the 2021 tax return.
- Use IRS Free File or Tax Assistance Programs
- If you make $73,000 or less, you qualify for IRS Free File.
- Volunteer Income Tax Assistance (VITA) programs also offer free filing help.
More Than $1 Billion in Unclaimed 2021 Tax Refunds
The IRS estimates that over $1 billion in unclaimed refunds from 2021 tax returns remain unclaimed. The median refund amount is $781, but this does not include the Recovery Rebate Credit or other refundable tax credits, which could increase the total refund amount.
Why Haven’t Some People Claimed Their Refunds?
- They did not file a 2021 tax return
- They had too little income and were not required to file
- They moved and never received IRS notifications
- They were unaware they qualified for a refund
If a taxpayer does not file within three years, unclaimed refunds become the property of the U.S. Treasury. The deadline to claim 2021 refunds is April 15, 2025.
How to Claim an Unfiled 2021 Tax Refund
- File a 2021 tax return by April 15, 2025 using Form 1040.
- Check for additional tax credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), and Recovery Rebate Credit.
- Use IRS Free File or a professional tax preparer if assistance is needed.
DOGE Dividend Proposal: Potential $5,000 Payments for Taxpayers?
A separate proposal, the DOGE Dividend, has been discussed as a potential $5,000 payment to American taxpaying households.
What Is the DOGE Dividend?
- The Department of Government Efficiency (DOGE) is a cost-cutting initiative proposed under Elon Musk’s leadership.
- President Donald Trump has expressed support for returning a portion of these government savings to taxpayers.
- The proposal suggests that 20% of the estimated $2 trillion in savings would be redistributed to taxpayers, totaling $400 billion.
Who Could Qualify for a DOGE Dividend Check?
- Only households that pay federal income tax in 2025 would be eligible.
- Non-taxpaying households would not receive a payment under the proposed plan.
As of now, no official updates have been provided on the status of the DOGE Dividend proposal.
If you missed out on the 2021 stimulus payments or have not filed your 2021 tax return, you still have time to claim your refund and the Recovery Rebate Credit.
Check if you received the full $1,400 stimulus payment
File a 2021 tax return before April 15, 2025
Use free IRS resources if needed
Stay informed about the potential DOGE Dividend proposal
Failing to file before the deadline means losing out on potential refunds forever, so take action as soon as possible.
FAQs
1. What is the deadline to claim the $1,400 Recovery Rebate Credit?
The deadline is April 15, 2025.
2. Who qualifies for the Recovery Rebate Credit?
Those who did not receive the full third-round stimulus payment in 2021 and meet the income requirements.
3. How do I claim the credit?
File a 2021 tax return and enter the credit on Line 30 of Form 1040.
4. How do I know if I already received my stimulus check?
Check IRS Notice 1444-C or your bank statements from 2021.
5. What happens if I miss the April 15, 2025, deadline?
You will lose the ability to claim the credit or any unfiled tax refund.
6. Will I receive the DOGE Dividend check?
The DOGE Dividend proposal is not yet approved, and only taxpaying households in 2025 would be eligible if passed.
