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In a crucial reminder, the Internal Revenue Service (IRS) is urging eligible individuals who may have missed out on the Economic Impact Payments to file their tax returns and seize their money through the Recovery Rebate Credit before the looming deadlines.

Deadline Alert: May 17, 2024, and April 15, 2025

For those eligible for the Coronavirus tax relief-related Economic Impact Payments, the clock is ticking. The deadlines to file a return and claim the 2020 and 2021 credits are May 17, 2024, and April 15, 2025, respectively.

What’s at Stake: Recovery Rebate Credit

The Recovery Rebate Credit is a refundable credit tailored for those who missed out on one or more Economic Impact Payments, commonly known as stimulus payments. The IRS estimates that some individuals and families may still be eligible for these payments, emphasizing that a tax return must be filed to make the claim, regardless of income level.

Who’s Eligible?

For the 2020 Recovery Rebate Credit, eligibility requires U.S. citizenship or residency, independence from another taxpayer, and a valid Social Security number issued before the tax return due date.

Similarly, for the 2021 Recovery Rebate Credit, eligibility criteria include U.S. citizenship or residency, not being a dependent of another taxpayer, having a Social Security number issued by the tax return due date, or claiming a dependent with a valid identification number.

Even for the Deceased: Claiming Credits for 2020 and 2021

Surprisingly, the 2020 Recovery Rebate Credit can be claimed for individuals who passed away in 2020. Furthermore, the 2020 and 2021 Recovery Rebate Credits can be claimed for someone who died in 2021 or later.

File Before It’s Too Late: Deadlines Recap

To claim the 2020 Recovery Rebate Credit, file a tax return by May 17, 2024. For the 2021 Recovery Rebate Credit, the deadline is April 15, 2025.

Free Help Available

Qualified taxpayers can access free one-on-one tax preparation assistance nationwide through programs like Volunteer Income Tax Assistance and Tax Counseling for the Elderly. The IRS emphasizes the availability of support to ensure all eligible individuals receive their entitled credits.

No Penalty, Quick Refunds, and More Benefits

In its ongoing effort, the IRS encourages non-filers to explore potential benefits under the tax law. Stressing that there is no penalty for claiming a refund after the due date, the IRS highlights the fastest and easiest way to receive a refund is through direct deposit.

Protecting Your Benefits: It’s Not Income

Crucially, any Recovery Rebate Credit received won’t be considered income when determining eligibility for federal benefits such as Supplemental Security Income, SNAP, TANF, and WIC. Claiming credit also has no impact on immigration status or the ability to obtain a green card or immigration benefits.

Check Online and Acgoot Now

Individuals can utilize their IRS Online Account to check if they received any Economic Impact Payments and the total amounts. The IRS emphasizes the urgency for eligible individuals to act promptly and claim their entitled credits before time runs out.

Source (IRS News).