The possibility of collecting a new stimulus check of up to $1,400 has become one of the most talked-about topics in the U.S. Hispanic community. According to official information provided by the Internal Revenue Service (IRS), this assistance corresponds to taxpayers who did not claim the 2021 Recovery Rebate Credit and, therefore, could have been left out of the previous payments. Below, we tell you about the deadlines, requirements and collection methods so as not to miss this financial relief opportunity.
A third payment that seeks to remedy omissions
The origin of this stimulus goes back to the economic relief measures adopted in 2020 and 2021 in the face of the health crisis, when the US government issued three rounds of payments – commonly called “stimulus checks” or “Economic Impact Payments (EIPs)”- for affected individuals and families. However, the IRS found that about one million taxpayers never fully claimed this benefit, despite meeting the requirements.
To close this gap, the IRS announced at the end of 2024 that it would send automatic payments to those who, having filed their 2021 tax return, did not include the Recovery Rebate Credit. This measure will cover up to USD 1,400 per eligible individual, totaling approximately USD 2.4 billion spread among those who qualify for this stage.
Key dates: until when you can collect
According to official information, the vast majority of those eligible for the automatic payment should receive it by the end of January 2025, which is said to be January 30. The IRS estimates that deposits will be made directly to the bank account recorded on the most recent tax return (usually 2023) or, if not available, a paper check will be sent to the address on file.
Now, if a person did not file their 2021 return at the time, they still have the option to do so until April 15, 2025, the deadline to claim this and any other outstanding refunds. This deadline is critical for those taxpayers who, out of ignorance or because they felt their income was too low, did not complete the proper documentation.
How to find out if you are eligible for the new stimulus
- You filed your 2021 tax return, but did not request the Recovery Rebate Credit
- The IRS has internally verified which taxpayers did not claim that item. If it identified that you qualify, it will issue the check without you having to complete any additional paperwork.
- You did not file your 2021 return, but you are entitled to the credit
- Even if you believe your income is below the legal filing threshold, you still need to file your 2021 return by April 2025 so that the IRS can evaluate your situation and, if it proceeds, issue the payment.
- The maximum amount is $1,400 per person
- The exact amount you are entitled to is based on several factors (income, household size, etc.). If you have already received part of these payments, the amount will be adjusted according to what is still to be received.
Automatic payments: what it means and what to do if you changed bank accounts
The IRS has announced that taxpayers who qualify for automatic payment will not need to file additional forms or amend their return. This is one of the key points of the initiative: to simplify the process for those who would otherwise have to do complicated paperwork or hire assistance to rectify previous returns.
If the bank account declared in 2023 has been closed, the deposit could be rejected. In that case, the IRS will proceed to forward a paper check to the taxpayer’s address of record. In addition, a separate notification letter will be dispatched to confirm that the payment has been issued.
Why is the deadline extended to 2025?
The tax authorities are offering until April 15, 2025, for those who have not filed their 2021 return and want to claim the Recovery Rebate Credit or any other credit balance that may be due. With this measure, the IRS seeks to ensure that no eligible taxpayer is left out of the assistance due to lack of information or time. Historically, when a taxpayer fails to file a return, they lose the ability to obtain refunds after a statute of limitations period (in this case, until 2025).
Does it affect other benefits?
It should be clarified that this stimulus check is not considered taxable income and, therefore, does not interfere with eligibility for programs such as Supplemental Security Income (SSI), food stamps (SNAP), Temporary Assistance for Needy Families (TANF) or the Special Supplemental Nutrition Program for Women, Infants and Children (WIC). The IRS detailed on its website that “anyone receiving this payment will not have their status affected, nor will they lose access to other federal benefits”.
Practical tips for those waiting for their payment
- Check your bank account: if you usually receive refunds via direct deposit, keep your information up to date with the IRS to avoid rejection of the payment.
- Verify the mailing address: if you do not have direct deposit, make sure the address on your 2023 return is correct, as that is where you will receive the check.
- Be alert to communication from the IRS: you will receive a letter confirming your payment, which may arrive in an envelope on official letterhead.
- Keep documentation: have both your 2021 return and any prior IRS communications handy.
- Deadlines and reminders: if you have not yet filed your 2021 return, arrange to do so by April 15, 2025.
In a nutshell
This new $1,400 stimulus check seeks to remedy the omissions that left thousands of people without collecting the Recovery Rebate Credit in previous years. Thanks to the IRS initiative, nearly one million taxpayers – many of them with low incomes or atypical tax situations – could receive this financial boost. For most, the payment will come automatically, with no additional paperwork. However, those who have not declared in 2021 have time until April 15, 2025 to present their documentation and not lose this benefit.
For more information on this process, it is recommended to visit the official IRS website and consult the section dedicated to “2021 Recovery Rebate Credit Questions and Answers”, where the calculation method and the steps for those who have not yet filed their return are detailed. In this way, millions of families will be able to have more certainty about their finances and meet the requirements before the deadline.
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