The Internal Revenue Service today reminded those who may be entitled to the COVID-era Recovery Rebate Credit in 2020 that time is running out to file a tax return and claim their money.
Most taxpayers eligible for Economic Impact Payments linked to the coronavirus tax relief have already received or claimed their payments via the Recovery Rebate Credit. But for those who haven’t yet filed a tax return for 2020, the legal deadline is May 17, 2024.
The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments, also known as stimulus payments, distributed in 2020 and 2021. Eligible taxpayers must file a tax return first to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent.
For individuals wanting to claim the 2021 Recovery Rebate Credit, they have until April 15, 2025, to file the required tax return.
Taxpayers owed a refund have three years after the filing due date to file and claim any money entitled to them. For 2020 tax returns, this year’s May 17 due date is three years after the original May 17, 2021, tax deadline.
The IRS also reminds other people who haven’t filed a tax return for 2020 to check their records; it’s possible they may be overlooking a potential tax refund that will no longer be available after May 17. The IRS plans to provide more detailed state-by-state information later this month for taxpayers who may have overlooked filing and getting a refund for 2020. These taxpayers will also face a May 17 deadline to file.
Who’s eligible?
Eligibility for the 2020 and 2021 Recovery Rebate Credit generally requires being a U.S. citizen or U.S. resident alien in the respective year, not being a dependent of another taxpayer and having a Social Security number issued before the tax return's due date.
Additionally, the 2020 Recovery Rebate Credit can be claimed for someone who passed away in 2020 or later.