Check your eligibility before the 2025 deadline

Thousands of Americans still have a chance to claim up to $1,400 from the Internal Revenue Service (IRS) through the Recovery Rebate Credit, but the clock is ticking. The deadline to secure this amount, tied to 2021 tax returns, is April 15, 2025. The IRS recently revealed it has started automatically distributing these payments to eligible taxpayers who didn’t claim the credit earlier. This move comes after the agency identified roughly one million people who missed out on the benefit during the COVID-19 pandemic, based on an internal data review. The total payout is estimated at a staggering $2.4 billion, reaching individuals and families across the United States.

For many, these funds offer an unexpected financial boost. The IRS emphasized that qualifying taxpayers who’ve already had their returns processed don’t need to take any further steps to receive the money, which will either be deposited directly into their accounts or mailed as a check. This initiative reflects the agency’s ongoing efforts to enhance services and ensure Americans get the benefits they’re entitled to, especially following the economic hardships of recent years.

Known as Economic Impact Payments, or stimulus checks, these funds were originally rolled out to support people during the height of the pandemic when work dried up for millions. Now, with this latest distribution, the goal is to reach those who, due to oversight or error, didn’t claim the credit at the time. Read on to learn what it takes to secure this payment and the key details that could make all the difference.

Eligibility determines who gets the full amount

Specific criteria define who qualifies for the Recovery Rebate Credit. Individuals who filed their 2021 taxes with an adjusted gross income (AGI) of up to $75,000 are eligible for the maximum $1,400. For married couples filing jointly, the threshold rises to $150,000, unlocking up to $2,800. Beyond these limits, the credit phases out, disappearing entirely at $80,000 for singles or $160,000 for couples.

Dependents listed on 2021 returns also qualify for $1,400 each, regardless of age. This means families with children or other dependents could see substantial sums, depending on their circumstances. The IRS found that many taxpayers either didn’t know about this option or struggled to include the credit in their original filings.

IRS Commissioner Danny Werfel underscored the agency’s dedication to simplifying the process. He noted that automating these payments eliminates the need for taxpayers to amend their returns manually—a task that can be both time-consuming and complex. Still, those who haven’t yet received an automatic payment must act before the deadline.

April 15 deadline looms large

Anyone who missed the credit in 2021 still has time to claim it, but the window is narrowing. By April 15, 2025, eligible taxpayers must file or amend their 2021 tax return to request the funds. This requires careful attention, especially for those who’ve changed addresses or bank accounts since then, as the IRS will rely on the information it has on file to send payments.

For those already receiving automatic deposits or checks, no action is needed. The IRS has begun releasing funds in batches, with taxpayers likely seeing them arrive over the coming weeks, depending on the agency’s internal schedule. Most of the $2.4 billion is expected to be disbursed throughout 2025, though delays may affect those relying on mailed checks.

Families and individuals within the income limits who haven’t yet received funds should check their eligibility soon. The IRS website provides tools and detailed guidance to assist, allowing taxpayers to confirm their status and take necessary steps to secure the credit.

Key criteria to secure your payment

Understanding the requirements is crucial to avoid missing out. Here’s what determines eligibility:

• Income caps: Up to $75,000 for singles and $150,000 for couples, with a gradual phase-out up to $80,000 and $160,000, respectively.
• Dependents: Each dependent claimed in 2021 earns $1,400, no age restrictions.
• 2021 filing: The credit applies only to those who file or amend their 2021 return by the deadline.
• Automation: Payments are being sent automatically to those already flagged as eligible by the IRS.

These rules were tailored to address the economic fallout of the pandemic, when stimulus payments propped up millions of households. Today, the focus is on righting past oversights, targeting those who didn’t claim the credit due to lack of awareness or logistical hurdles.

The IRS’s use of internal data to spot these gaps has paid off, identifying around one million eligible taxpayers. The agency hopes most will receive funds seamlessly, but those outside the automatic process must take initiative before time runs out.

Timeline to claim your funds

Timing is everything for securing the Recovery Rebate Credit. Here’s a breakdown of key dates and steps:

• March 2025: IRS begins automatic payment distribution.
• April 15, 2025: Final deadline to file or amend a 2021 return and claim the credit.
• Following weeks: Estimated delivery window for checks or deposits for those acting by the deadline.

Those who missed the original 2021 filing deadline can still correct their status, but the opportunity is shrinking fast. The IRS advises gathering tax documents and checking eligibility as soon as possible.

With the deadline approaching, the urgency is palpable for those relying on the funds for essentials. Amid lingering inflation pressures in parts of the U.S., this $1,400 could provide timely relief for many households.

How $2.4 billion could ripple through the economy

Distributing roughly $2.4 billion has the potential to jolt local economies across various communities. Experts suggest that while smaller than the initial pandemic relief packages, these funds could still boost spending in areas like retail and services. Back in 2021, Economic Impact Payments poured billions into the economy, helping sustain families through widespread shutdowns.

This round aims to address past inequities. Many eligible recipients are lower-income individuals who faced barriers to accessing benefits earlier, whether due to limited information or logistical challenges. The IRS estimates that automating payments will significantly reduce those obstacles, though the April deadline remains a hurdle.

For recipients, the funds arrive at a critical juncture. Whether used to pay off debt, cover daily costs, or tackle overdue needs, up to $1,400 per person offers a welcome cushion amid ongoing economic uncertainty.

Steps if your payment hasn’t arrived

Not everyone will receive funds automatically, requiring proactive effort. Taxpayers who believe they’re eligible but haven’t seen a deposit or check should visit the IRS website to check their status. The site offers instructions on amending a 2021 return to claim the credit before the cutoff.

Amending a return can take weeks, depending on individual circumstances, so starting early is wise—especially for those with dependents or income near the thresholds. The IRS also warns that outdated banking or address details could delay delivery, making it vital to keep records current.

With April 15, 2025, fast approaching, the takeaway is clear: swift action is essential. Thousands are already seeing the funds, and others can still benefit by taking the right steps in the days and weeks ahead.