
The IRS reminded taxpayers who may be entitled to a COVID-19-era rebate from 2020 that they only have until May 17 to file a tax return and claim their money, CPA Practice Advisor reported.
The Recovery Rebate Credit, as it is known, 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,” the IRS said in its announcement. “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.”
Individuals who have not yet filed a tax return for 2020 must do so by May 17, 2024 before claiming the credit, the IRS said. Individuals who want to claim the 2021 Recovery Rebate Credit have until April 15, 2025 to file the required tax return.
The IRS explained that 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.
To be eligible for the 2020 and 2021 Recovery Rebate Credit, a person must be a U.S. citizen or U.S. resident alien in the respective year, cannot be a dependent of another taxpayer and must have a Social Security number issued before the tax return's due date. The 2020 Recovery Rebate Credit can be claimed for someone who passed away in 2020 or later, the IRS said.