On March 27, 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a $2 trillion package to address the economic impact of the Covid-19 pandemic. The rule allows direct payments of up to $1,200 for individuals, $2,400 for couples, and $500 for each qualifying child.
The program is open to American citizens living abroad as well as those living in the US. This ensured that no one was left out of the federal government’s efforts to assist American families, regardless of where they lived.
The requirements to receive the 2021 unclaimed stimulus checks
The Recovery Refund Credit serves as a retroactive adjustment. The stimulus amount was initially calculated using 2018 or 2019 income, but the final value is based on 2020 adjusted gross income. This enables those who have had salary reductions or changes in their tax situation to claim any unreported differences.
To receive the funds, the IRS requires filing tax returns in 2018 or 2019 or registering by November 21, 2020. If you missed the deadlines, you can still claim the Recovery Refund Credit on your 2020 tax return.
Experts highlight that this credit is refundable, allowing even expatriates without tax obligations to receive it. Furthermore, unlike other tax benefits, it is not subject to withholdings for prior debts owed to federal agencies.
What else should you know about the 2021 stimulus checks?
The State Department reports that nearly 9 million Americans live abroad. Many of them are unaware of their ability to claim the economic stimulus, particularly those who have not filed recent returns. The organizations recommend reviewing the income thresholds of $75,000 for individuals, $112,500 for heads of households, and $150,000 for couples.
Those who exceeded the limits in 2018 or 2019 but reduced their income in 2020 may be eligible for adjustments. A single taxpayer with a 2019 income of $80,000 and a 2020 income of $70,000 may be eligible for an additional $1,200.
The 2020 tax season began on January 27, 2021, and taxpayers can request the credit starting from that date. To complete the process, fill out Form 1040 or 1040-SR and attach the RRC (Rebate Recovery Credit) Schedule. Those who have previously received a partial payment must declare the amount received to avoid duplication.
Check your eligibility now, because you have until April 15 to claim the stimulus check. If you miss that deadline, you will lose that money forever, and it will become the property of the United States Treasury, with no possibility of future claims.
