Understanding IRS Stimulus Checks: Recent Developments and How to Claim Unreceived Payments
The COVID-19 pandemic reshaped the global economy, causing financial instability for millions of Americans. In response, the United States government, through the Internal Revenue Service (IRS), implemented a series of Economic Impact Payments (EIPs), commonly referred to as stimulus checks, to provide relief to struggling households. These payments were designed to mitigate the economic downturn, ensuring that individuals and families had the financial resources to sustain themselves during uncertain times.
As we step into 2025, there are still critical developments concerning unclaimed stimulus checks, eligibility criteria, and upcoming deadlines that every taxpayer must be aware of. With the IRS taking proactive measures to address the issue of missing payments, eligible recipients have a final opportunity to claim the financial assistance they are entitled to. This article delves deeply into the history of stimulus checks, the current situation regarding unclaimed payments, and the essential steps to ensure every eligible taxpayer receives their due funds before the deadline.
A Comprehensive Recap of the Three Rounds of Economic Impact Payments
To fully grasp the significance of the recent updates surrounding stimulus checks, it is essential to revisit the three rounds of Economic Impact Payments distributed between 2020 and 2021. Each round varied in terms of eligibility requirements, payment amounts, and distribution mechanisms.
First Round: CARES Act (March 2020)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law in March 2020, marked the first wave of direct financial assistance. Under this initiative:
- Eligible Individuals: Received up to $1,200 per adult.
- Married Couples Filing Jointly: Qualified for a maximum of $2,400 combined.
- Dependent Children: Families received an additional $500 per qualifying child under the age of 17.
The income thresholds for receiving full payments were as follows:
Single filers with an Adjusted Gross Income (AGI) of up to $75,000.
Heads of household with an AGI of up to $112,500.
Married couples filing jointly with an AGI of up to $150,000.
Beyond these limits, the payments were gradually reduced, phasing out completely for single filers earning above $99,000, heads of household above $136,500, and married couples earning over $198,000.
Second Round: COVID-Related Tax Relief Act (December 2020)
The second stimulus check, issued under the COVID-Related Tax Relief Act, was relatively smaller in comparison to the first round:
- Eligible individuals received up to $600.
- Married couples filing jointly received up to $1,200.
- Dependent children under 17 qualified for an additional $600 per child.
Income limits and phase-out thresholds remained consistent with the first round. However, many Americans faced issues receiving this payment due to incorrect bank account details, outdated mailing addresses, and IRS processing delays.
Third Round: American Rescue Plan (March 2021)
The largest of the three stimulus payments was part of the American Rescue Plan:
- Eligible individuals received up to $1,400.
- Married couples filing jointly qualified for up to $2,800.
- Dependents, including college students and disabled adults, were included in this round, each qualifying for an additional $1,400.
Income thresholds for full payments remained at $75,000 (single filers), $112,500 (head of household), and $150,000 (married couples filing jointly), but phase-out limits were lower, making fewer high-income earners eligible for partial payments.
Despite these three rounds of economic relief, a surprising number of eligible individuals never received their payments or encountered issues with receiving the correct amount.
Unclaimed Stimulus Payments: The Current Situation in 2025
Fast forward to 2025, and the IRS has identified that nearly one million taxpayers did not claim their stimulus checks or the associated Recovery Rebate Credit on their 2021 tax returns. To address this, the IRS announced in December 2024 that it would begin issuing automatic payments to individuals who failed to claim the credit. These payments, amounting to as much as $1,400 per individual, are now being distributed. The most notable aspect of this process is that taxpayers do not need to file an amended tax return to receive these funds. The IRS is handling the correction automatically.
However, there are still thousands of people who may be eligible but are at risk of missing out entirely because they have not filed a tax return. These individuals must take immediate action to claim their funds before the April 15, 2025 deadline.
Who Is Eligible for Unclaimed Stimulus Payments?
While most eligible Americans received their payments automatically, there are key groups who might still be entitled to claim their stimulus money:
1. Non-Filers Who Did Not Submit a 2021 Tax Return
Many low-income individuals, retirees, and others who were not required to file a tax return in 2021 may have missed their stimulus checks simply because they never submitted a tax return. These individuals must file a 2021 tax return before April 15, 2025, to claim the Recovery Rebate Credit and receive their payment.
2. Individuals with Incorrect Banking or Mailing Information
Some people had issues with direct deposit failures, closed bank accounts, or outdated mailing addresses, causing their checks to be returned to the IRS as undeliverable. If this happened, the IRS might still be holding their payment.
3. Those Who Had a Change in Dependency Status
If a dependent was improperly claimed by another taxpayer, or if a person’s filing status changed (e.g., due to divorce or death of a spouse), they may not have received the payment they were entitled to. These individuals can still claim the missing funds.
Steps to Claim Missing Stimulus Payments
If you believe you are owed a stimulus payment, follow these essential steps to ensure you receive your money:
Step 1: Check Your IRS Account
Log into your IRS Online Account at irs.gov to view your tax records and see if a stimulus payment was issued to you. If it was sent but never received, you may need to take action.
Step 2: File a 2021 Tax Return
If you never filed a 2021 tax return, complete and submit one before April 15, 2025, to claim the Recovery Rebate Credit. You can use IRS Free File services if your income is below the threshold.
Step 3: Use the “Where’s My Refund” Tool
If you filed a 2021 tax return but haven’t received the expected payment, check the status using the IRS “Where’s My Refund” tool.
Step 4: Contact the IRS if Necessary
If your payment is missing and you have confirmed your eligibility, call the IRS Help Line at 800-829-1040 for assistance.
Final Thoughts: Don’t Miss the Deadline!
Stimulus checks provided essential financial relief during the COVID-19 crisis, but thousands of eligible recipients have yet to claim their payments. With the IRS actively processing automatic corrections, many individuals will soon receive their missing funds. However, those who never filed a 2021 tax return must take action before April 15, 2025, to secure their rightful payment.
Ignoring this deadline could mean losing out on up to $1,400 in financial support. Take the necessary steps today to ensure you receive the money you deserve!
