A limited group of taxpayers still has the opportunity to claim their 2021 Recovery Rebate Credit before the deadline. Individuals who did not file their 2021 income tax returns yet can secure a potential refund of up to $1,400 per person by April 15. This credit was part of the federal government's efforts to bolster the economy during the pandemic. Families with no dependents could receive up to $1,400 for singles and $2,800 for married couples filing jointly without children. The IRS emphasizes that those eligible but unclaimed funds must be claimed via a 2021 tax return, even if their income was minimal or non-existent.

The Recovery Rebate Credit represented the final round of stimulus payments distributed in response to the economic challenges posed by the pandemic. In early 2021, the Internal Revenue Service initiated direct payments to households as advanced credits. These payments were more efficient due to prior data collection from earlier stimulus rounds. Matt Hetherwick, from the Accounting Aid Society in Detroit, mentioned an uptick in filings this year for the 2021 tax year, indicating some individuals are catching up on missed opportunities. He reassured that most people already received their payouts, but certain groups might still qualify.

For those unaware, additional tax benefits expanded during the pandemic include the child tax credit, dependent care expenses, and earned income tax credit. Filing a 2021 return offers access to these extra credits, making it advantageous for eligible taxpayers to submit their forms. The IRS provides free assistance through its Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs for individuals earning $67,000 or less annually.

Not everyone qualifies for the maximum credit; eligibility depends on income thresholds. For instance, single filers earning above $80,000 and married couples filing jointly earning over $160,000 do not qualify for the recovery rebate. Those within the phaseout range may receive partial credits. Furthermore, any recovery rebate credited does not affect eligibility for other federal benefits such as Supplemental Security Income or food assistance programs.

Despite the looming deadline, many have already benefited from the stimulus payments during the pandemic’s peak. Interestingly, some late recipients saw unexpected refunds in recent months after filing overdue 2021 returns. Approximately one million taxpayers received surprise payments due to overlooked claims. The IRS proactively identified these cases and issued automatic payments without requiring further action from the beneficiaries.

Beyond the recovery rebate, substantial unclaimed refunds totaling over $1 billion remain available for those who haven't filed their 2021 returns. Michigan alone accounts for nearly 40,300 individuals owed roughly $37.3 million in refunds. By meeting the April 15 deadline, taxpayers stand to recover withheld taxes or access various tax credits enhancing their financial stability.