Stimulus Update: IRS Urges Taxpayers to Take Action to Claim Unpaid Stimulus Funds

Don't leave stimulus money on the table.

The American Rescue Plan Act was signed into law over a year ago to provide stimulus money to individuals and families coping with ongoing consequences of the coronavirus. But not everyone has received the payments that this COVID-19 relief legislation provided.

For those who didn't get all of the money that they were due deposited into their bank accounts, the IRS is urging swift action. It's important to heed the advice from the Internal Revenue Service so you can get money that you're owed, as you could potentially be entitled to thousands of dollars.

The IRS wants to make sure taxpayers get their stimulus money

The IRS issued a news release on April 19, 2022 addressing the issue of unpaid stimulus funds. Specifically, the agency wanted to urge taxpayers to make sure they claim the expanded Child Tax Credit.

This expanded Child Tax Credit was one of several forms of stimulus aid authorized under the American Rescue Plan Act. It increased the existing Child Tax Credit from $2,000 to $3,600 for children under age 6 and to $3,000 for older children. While $1,400 of the credit was refundable under the old rules, the American Rescue Plan Act made the entire credit refundable. And it provided for half the credit amount to be paid out over the months of July to December. These rules applied for the 2021 tax year only.

Not everyone got their money, though. and even parents who received those monthly payments last year are still entitled to half of the remaining funds from the expanded credit. The IRS news release reminded parents to claim this money and affirmed to taxpayers that it isn't too late to get their funds.

The tax deadline has passed but you can still claim your credit

Claiming unpaid stimulus money will require filing a 2021 tax return. The deadline to do so has passed, but as the IRS made clear in its recent news release, it is not too late to submit your returns and claim your money anyway.

"Families who don't owe taxes to the IRS can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year at any point until April 15, 2025, without any penalty," the IRS release stated.

Although you have years of time left, you don't want to wait to get your hands on these funds. So, if you haven't yet filed your returns yet for 2021, be sure to do so ASAP. There are free online filing tools that you can use to submit your tax forms, so check them out on the IRS website and find one that works for you.