The US issued three rounds of Economic Impact Payments (EIP) for economic relief during the COVID-19 pandemic. In the third round, up to $1,400 was to be given to each eligible person. Many people forgot to claim this Recovery Rebate Credit (RRC) while filing their tax returns in 2021 or filled it incorrectly. Now the IRS has taken a shocking decision that it will automatically send $1,400 to those who did not take this credit in their 2021 returns.
This article will explain in simple language what this $1,400 stimulus check is, who is eligible for it, how will the payment be made, what is the last date and what are the ways to avoid scams. Also, we will understand in detail through examples how you can get your money in time.
What is Recovery Rebate Credit and its history
Recovery Rebate Credit (RRC) was a means of economic relief through which those people were to get money like Diwali bonus who did not get full stimulus during the pandemic. The main points behind this credit are as follows:
- Three rounds of Economic Impact Payments
- $1,200 per person in the first installment
- $600 per person in the second installment
- $1,400 per person in the third installment
- Adjusted Gross Income (AGI) limit to determine eligibility
- If you did not get the full or partial amount while filing the return, then you could claim in RRC
- This credit was fully refundable, that is, even if there is no tax to be paid, the amount would be refunded
In 2021, many taxpayers left the space for RRC blank or filled zero, yet they were eligible. Now the IRS has identified them on the basis of internal review and will send automatic payment by the end of January 2025.
Who is eligible?
To get the automatic $1,400, you must meet the following conditions:
- You filed a 2021 tax return but did not take the Recovery Rebate Credit
- The RRC field was blank or incorrectly zeroed out
- You are within the Adjusted Gross Income (AGI) eligibility range
- You have a valid Social Security number (SSN)
- You are a U.S. citizen or resident alien
- You are not claimed as a dependent of another person
AGI eligibility range
- Single
- Full Payment Eligibility AGI: Up to $75,000
- Phase-Out Range: $75,000 to $80,000
- Head of Household
- Full Payment Eligibility AGI: Up to $112,500
- Phase-Out Range: $112,500 to $120,000
- Married Filing Jointly
- Full Payment Eligibility AGI: Up to $150,000
- Phase-Out Range: $150,000 to $160,000
If your income is below these ranges, you will receive the full $1,400. You will receive at least a partial amount in the phase-out range and no payment above that range.
How will payments be made
The IRS will make payments automatically. The payment method will depend on the information on your most recent tax return:
- Direct deposit
If the IRS has your bank statement from your 2023 or 2024 return, the funds will be deposited directly into your account. - Paper check
If you don’t have a bank statement, the IRS will mail a paper check to your registered address. - IRS notification letter
After the payment, you will receive a letter with the total amount, date, and deposit/mailing information. Keep it.
If you’ve changed your address, set up forwarding with USPS and fill out the Address Change form (Form 8822) on the IRS website to prevent the check from going to the wrong place.
Deadlines and steps
- Schedule for automatic payments: Most eligible individuals will receive funds by the last week of January 2025.
- Deadline to file 2021 return: If you haven’t filed your 2021 return yet, file by April 15, 2025, and claim the Recovery Rebate Credit.
If you don’t file a return, the IRS will automatically send you an RRC even if you haven’t claimed it before, so file anyway to avoid technical problems in the future.
How to file a 2021 tax return
IRS Free File or VITA
- File a free online return with the Free File program (if AGI is at least $79,000).
- VITA (Volunteer Income Tax Assistance) centers offer free assistance in local communities.
Paid tax services
- If your situation is complex, get help from a tax professional.
Fill out Form 1040
- In the Recovery Rebate Credit section, enter the amount of EIP you did not receive.
- Update AGI, SSN, address, bank details as per the chart.
E-Filing or mailing
- Send return by E-File, you will receive a confirmation mail or message.
- If mailing, send by Certified Mail so it can be tracked.
Ways to cross-check information
- Check payment status with your SSN and date of birth in the ‘Get My Payment’ tool on IRS.gov.
- Create an IRS account and view the latest notifications, letters and tax records.
- If payment does not show up, call the IRS Helpline for timely follow-up.
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How to avoid IRS scams
- The IRS will never send information about stimulus by text or email.
- If you receive a suspicious link or call, do not click or respond.
- Visit IRS.gov directly to check payment status.
- Do not disclose your SSN, bank account or PIN number in an unsolicited call or message.
- Send a message to phishing@irs.gov to report a scam.
Detailed Example
- Mrs. Jones, Texas
Mrs. Jones filed only her federal tax return in 2021 but left the Recovery Rebate Credit section blank. She thought she received EIP3 in her bank. In January 2025, she checked the ‘Get My Payment’ tool and found the IRS credited $1,400 to her account. - Mr. Singh, New York
Mr. Singh did not file his 2021 return because his income was low and his retirement pension was tax-free. He was unaware of the rebate credit. The IRS mailed him an automatic paper check in February 2025. He deposited the check in his bank account and cleared his documentation claiming the RRC by April 15, 2025.
Frequently Asked Questions (FAQs)
Q1. Do I have to fill out any form?
No, if you filed your 2021 return but did not file the RRC, the IRS will send it automatically.
Q2. Will the payment be taxable?
No, it is a refundable credit and will remain tax-free.
Q3. I received the full EIP3 but will still get the RRC?
Only those who did not receive their full $1,400 and did not claim it on their tax return are eligible.
How do I track my payment?
Go to the Get My Payment tool and enter your SSN and date of birth.
Conclusion
This automatic $1,400 Recovery Rebate Credit Payment 2025 from the IRS is good news for millions of taxpayers who did not apply or forgot to. If you have not yet filed your 2021 return, make sure to complete it by April 15, 2025. Keep your information updated in time, avoid scams and make sure you get the money you deserve.
Tell your friends and family this information so that no eligible person is deprived of this opportunity. Visit IRS.gov now and check your payment status!
