To alleviate the financial burden of covid-19, the federal government issued three rounds of stimulus checks to the vast majority of Americans during the first 18 months of the epidemic.
The IRS confirmed that all first, second, and third payments, also known as Economic Impact Payments, have been distributed, but not to everyone who is eligible. In some cases, the IRS was unable to make the payment because it did not have the necessary information on file for some low-income households.
Those who have missed a payment or received less than their full entitlement may be eligible for back pay in the form of a Recovery Rebate Credit on their 2020 or 2021 federal tax return. Despite the fact that the tax deadlines for 2020 and 2021 have passed, the IRS allows filers up to three years from the due date of the return to file and receive a tax credit refund.
“This means you can file your return and receive your Recovery Rebate Credit until April 15, 2024,” says Mark Steber, Jackson Hewitt’s chief tax information officer.
How do you apply for a Recovery Rebate Credit?
If you believe you missed out on a stimulus check payment distributed during either of those tax years, you can still file a tax return for 2020 or 2021. Even if your household income suggests that you are not required to do so, you must file a tax return with the IRS.
You can file a late tax return online or by mail in the same way you would have filed it before the deadline.
The IRS, on the other hand, strongly advises filers to use the e-filing online site, which will speed up the processing of their returns and ensure that they receive the Recovery Rebate Credit as soon as possible.
Keep in mind that the first two stimulus checks were issued in fiscal year 2020, and the third in fiscal year 2021. To receive the payout, you must claim the missing payments on your tax return for the relevant year.
This procedure can also be used to claim other tax credits that you may have overlooked, such as the Earned Income Tax Credit.