If you haven’t claimed your stimulus check yet, you could be letting valuable money slip away—money that might be going straight to the Federal Reserve instead of your bank account. There’s an urgent deadline approaching: the Internal Revenue Service (IRS) has been holding over $1.1 billion in unclaimed checks from 2021, and they need to be claimed before it’s too late. The deadline to claim these payments is April 15.
What Are These Unclaimed Stimulus Payments?
The unclaimed funds come from stimulus checks that were part of the U.S. government’s Economic Impact Payments (EIP). These payments were issued during the pandemic as part of efforts to help Americans financially. They were sent out under the CARES Act, which started in March 2020.
The first round of payments was $1,200 per person and $500 for each qualifying dependent minor. Later, in December 2020, a second round of $600 payments was sent to eligible adults and children. The third round came in March 2021, through the American Rescue Plan, which sent $1,400 per eligible person, including children.
Who Can Claim Their 2021 IRS Stimulus Payments?
The IRS is holding onto stimulus checks from the third round of payments, which were sent in 2021. The agency clarified that most people received their full payments or a Recovery Rebate Credit if they were missing part of their stimulus money.
However, in December 2021, the IRS discovered that nearly one million people did not claim their credits, either by leaving the field empty or incorrectly marking it as $0 on their 2021 tax returns.
If you’re one of those affected, you still have time to claim the money—
How Can You Claim Your Stimulus Payment?
If you think you might qualify for the unclaimed stimulus check, the IRS recommends taking the following steps:
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Create or log into your IRS online account to get the necessary information.
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Request copies of relevant documents from your employer or bank if needed.
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Ask the IRS for a tax return or account transcript if you need help tracking your tax status.
It’s essential to file your 2021 tax return as soon as possible to avoid losing the money. The IRS has also warned that refunds might be withheld if 2022 and 2023 tax returns aren’t filed.
Tracking Your Refund Status
You can track the status of your refund online. Here’s how long it may take for the IRS to process your return:
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Current electronic returns: 24 hours
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Previous electronic returns: 3-4 days
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Paper returns: 4 weeks
The Impact of IRS Budget Cuts
Despite efforts to modernize the IRS through the Inflation Reduction Act of 2022, the agency has faced significant budget cuts. Over 6,000 IRS employees were laid off in February as part of federal downsizing measures, which makes it harder for the agency to handle taxpayers’ needs efficiently.
If you qualify for the 2021 stimulus checks, it’s crucial to act quickly. The longer you wait, the closer you get to the deadline, which could mean you miss out on this money forever.
