THE IRS had previously revealed that millions of Americans were owed over $1 billion in unclaimed 2021 tax refunds, amounting to up to $1,400 per individual.
The payments were reserved for those who did not receive one or more stimulus checks, or Economic Impact Payments, issued during the pandemic.
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These Americans were eligible to claim the Recovery Rebate Credit, a a refundable tax credit, to compensate for not receiving the stimulus money.
Payment amounts varied based on eligibility and faced a cap of $1,400 per person, totaling roughly $2.4 billion.
Eligible taxpayers who failed to claim the credit on their 2021 tax returns by leaving the Recovery Rebate Credit field blank or filling out a $0 should have received an automatic payment from the IRS in December or January.
For those who had yet to file their 2021 tax returns, on the other hand, the government agency warned that they would be required to file their 2021 tax returns to receive the $1,400.
The deadline to submit the returns and claim eligible refunds, including the stimulus payment, passed on April 15, 2025.
Refund amounts for 2021 were first automatically applied to debts to the IRS or a state tax agency, such as unpaid child support or student loans, if applicable.
Any Americans who did not file their taxes by the deadline forfeited any refunds, refundable tax credits, and overpayments, including the Earned Income Tax Credit and Recovery Rebate Credit.
Taxpayers had until this April to submit their 2021 tax returns because there is a strict three-year filing window for claiming refunds, according to IRS regulations.
Once the three-year period is up, any unclaimed funds are sent to the US Treasury and cannot be reclaimed.
No extensions or appeals are available for Americans who missed the April 15 deadline, the IRS has confirmed.
BANK ACCOUNT BOOST
The IRS announced in late December that it would be sending out automatic payments to eligible taxpayers who did not claim the Recovery Rebate Credit when filing their 2021 taxes.
“The IRS continues to work hard to make improvements and help taxpayers,” said IRS Commissioner Danny Werfel.
“These payments are an example of our commitment to go the extra mile for taxpayers. Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
More on stimulus checks
STIMULUS checks have been landing in the bank accounts of Americans since the beginning of the coronavirus crisis.
The Recovery Rebate Credit was created as a means for Americans to claim missing money from the COVID stimulus payments when filing their taxes.
The credit covered all three stimulus payments.
The first and second payments were tied to 2020 tax returns and issued under the CARES Act and COVID-Related Tax Relief Act.
The third payment was tied to 2021 tax returns.
The money was intended to provide a financial boost to taxpayers who missed out on one or more stimulus checks.
Although the deadline to get your $1,400 has passed, you may be eligible to receive other payments.
Two life-saving programs in the same state are sending out $500 monthly checks to select Americans – see the qualifying criteria.
Plus, Americans could get up to $400 in free money from four major banks but must act fast.