The new law passed states that by that date the IRS must have sent most of the “Economic Impact Payments”. The Supplemental Appropriations for Coronavirus Response and Relief Act of 2021 under which the second round of $600 minimum stimulus checks are distributed requires the Internal Revenue Service (IRS) and the Department of Treasury to distribute most payments by January 15.
But, in case the IRS was unable to process your payment due to lack of beneficiary information, you must claim it by filing a tax return in 2021 as a “Refund Recovery Credit” using Form 1040 or Form 1040-SR.
When to claim the “Refund Recovery Credit”?
You can claim the Refund Recovery Credit if you are eligible for aid but were not issued an Economic Impact Payment. Having received less than the amount of money you are entitled to is another reason to ask for disbursement of the money owed.
People who did not receive the full payment, either because the IRS did not account for the dependents is an example of the above.
“These forms can also be used by individuals who are not normally required to file a tax return, but are eligible for the credit,” the IRS states on its website.
Applies to those who did not receive the $1,200 check under CARES
Individuals who did not receive the first round of $1,200 provided under CARES or the IRS disbursed less than the amount due may also apply for the money owed through the tax credit.
As part of the distribution of the first stimulus check, the IRS enabled the “Non-filers” tool until Nov. 21 for applicants to enter their personal information to expedite the processing of late payments. But, at the moment, that service is not available.
The IRS began direct deposits of the second round of stimulus checks this week. The process of distributing the funds is expected to extend into January with paper checks and prepaid debit cards.