Time is Running Out for Non-tax Filers to Claim Recovery Rebate Credit

By NexGen Support Team

December 6, 2023

Time is Running Out for Non-tax Filers to Claim Recovery Rebate Credit

IRS Reminds Time Running Out for Non-tax Filers to Claim Recovery Rebate Credit

Attention to all who may qualify for the Recovery Rebate Credit from the IRS: Time is ticking to file your tax return and secure your rightfully owed funds!
Amid the pandemic, many eligible individuals have already received their Economic Impact Payments or claimed them through the Recovery Rebate Credit. Yet, the clock is ticking; you have until:

  • May 17, 2024, for the 2020 credit
  • April 15, 2025, for the 2021 credit
  • What is Recovery Rebate Credit?

    Recovery Rebate Credit
    The Recovery Rebate Credit is like a financial lifeline for those who missed the Economic Impact Payments, commonly known as stimulus checks, distributed in 2020 and 2021. The IRS believes there are still pockets of people and families who still need to claim their slice of this pie. You must file a tax return to grab this opportunity – don’t worry, even minimal or non-existent income counts.

  • Eligibility Criteria: To be eligible for the Recovery Rebate Credit, individuals must have been U.S. citizens or resident aliens for the year they claim the credit. They should not have been claimed as dependents on someone else’s tax return. They must possess a Social Security number valid for employment in the U.S.
  • Claiming the Credit: Individuals can claim the Recovery Rebate Credit on their annual tax return. This credit applies to tax years 2020 and 2021 when Economic Impact Payments were issued. You can claim the difference through this credit if you have not received the complete stimulus checks in these years.
  • Filing Deadlines: The deadlines to file a tax return and claim the Recovery Rebate Credit are specific to each tax year. For example, the deadlines for the 2020 and 2021 credits were May 17, 2024, and April 15, 2025, respectively.
  • Impact on Tax Refund or Liability: The Recovery Rebate Credit can either increase the amount of your tax refund or decrease the amount of tax you owe. It is a refundable credit, meaning it can result in a refund even if you don’t owe any taxes.
  • Special Cases: The credit can also be claimed on behalf of individuals who passed away if they were eligible in the year of their death.

    Eligible individuals must file their tax returns on time to claim this credit, especially if they missed the full amount of Economic Impact Payments during the pandemic.
  • Who’s in the running for this?

    For the 2020 Recovery Rebate Credit, you should have been a U.S. citizen or resident alien in 2020, not listed as someone else’s dependent, and own a Social Security number valid for U.S. employment issued before the tax return due date.
    For 2021, the rules are similar but with a twist: you can claim for a dependent with a Social Security number or an Adoption Taxpayer Identification Number.
    It is possible to claim the 2020 Recovery Rebate Credit for someone who passed away in 2020. And if someone departed in 2021 or later, you can claim the 2020 and 2021 credits on their behalf.

    Claim the 2020 and 2021 Recovery Rebate Credits – file your individual tax returns by May 17, 2024, and April 15, 2025, respectively.

    Need help filing your Individual tax filing? NexGen Taxes’ team of fully vetted accounting and tax professionals can help you file your personal tax returns for the years 2020 and 2021 and help you claim the Recovery Rebate Credit you are entitled to. We are here for you 24/7, reach out to us today.