In a move aimed at delivering financial relief to overlooked taxpayers, the Internal Revenue Service (IRS) has announced that it will send out $1,400 payments to nearly one million Americans who never received their 2021 Recovery Rebate Credit.
The surprise windfall stems from the third round of Economic Impact Payments authorized during the COVID-19 pandemic under the American Rescue Plan Act. While most eligible individuals received the payments automatically, many—particularly low-income Americans who do not regularly file tax returns—were left out.
According to the IRS, those eligible for this payment:
Did not file a 2021 tax return
Were qualified for the Recovery Rebate Credit
Have records with the IRS indicating eligibility, often through previous stimulus checks or other tax-related data
The IRS began issuing payments in December 2024, with many recipients expected to see the funds via direct deposit or paper checks. These payments are being issued automatically—no further action is required for eligible individuals.
For those who haven’t yet filed their 2021 return, the IRS is urging action. The final deadline to file and claim the Recovery Rebate Credit is April 15, 2025. After this date, any unclaimed stimulus-related funds from 2020 or 2021 will be forfeited.
If you think you may be eligible but haven’t filed a 2021 tax return, here’s what to do:
File your 2021 tax return electronically or by mail.
Use IRS tools to verify previous payments and check your eligibility.
Claim the Recovery Rebate Credit on your return if it wasn’t received.
The IRS has emphasized that free tax-filing options are still available through the IRS Free File program for qualifying individuals.
This one-time outreach effort reflects the IRS’s shift toward proactive strategies in reaching underserved taxpayers. The agency is not only working to close the gap on missed stimulus funds but also encouraging non-filers to claim other refundable credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).
As economic uncertainty continues for many households, a missed $1,400 payment can make a significant difference.
With the deadline to claim approaching fast, the IRS is encouraging all eligible individuals to act now before it’s too late.
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