Some taxpayers don't have much time left to claim stimulus money of up to $1,400 a person

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Time is running out for a very limited group of people who have yet to receive their 2021 recovery rebate credit. But remember, most people already received their pandemic-related payout so don't get too excited here.

The maximum credit is $1,400 per person. A single person who qualified with no dependents could have received up to $1,400. Married couples with no children who filed jointly qualify for up to $2,800.

The recovery rebate credit was the last of three rounds of stimulus payments issued to people by the federal government to shore up the economy after the pandemic hit.

We're talking about real money if you did not already receive the relief. But the deadline is fast approaching.

April 15 deadline looms for filing 2021 returns

You've got roughly three weeks or less to file a 2021 federal income tax return, if you didn't do that already, to meet the April 15 deadline to claim any tax refunds that might be owed, including a recovery rebate credit, for the 2021 tax year.

"Your 2021 recovery rebate credit will reduce any tax you owe for 2021 or be included in your tax refund," according to the IRS.

Any refund amount for 2021 automatically will be applied to amounts still owed to the IRS or a state tax agency and that money may be used to offset unpaid child support or other past-due federal debts, such as student loans.

Besides the recovery rebate credit, several tax benefits were expanded for the pandemic year of 2021, such as the child tax credit, credit for child and dependent care expenses and the earned income tax credit. Filing a 2021 return, if you didn't do that already, could help you claim those credits, too.

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Someone who hasn't filed a 2021 return, experts say, is especially likely to qualify for some of these extra credits, creating even more reason than usual to file a 2021 return.

Eligible taxpayers who did not file must file a 2021 tax return to claim a recovery rebate credit, the IRS notes, "even if their income from a job, business or other source was minimal or non-existent."

You'd claim the recovery rebate credit on Line 30 of the 1040 federal income tax return for the 2021 tax year.

Matt Hetherwick, chief program officer for the Accounting Aid Society in Detroit, said volunteer preparers at his nonprofit have completed more than 100 returns for tax year 2021 so far this year in order for people to make that April 15 deadline.

"It is a little more than what we typically see, but not substantial," Hetherwick said.

Given the challenges many faced during the COVID-19 pandemic, he's not of surprised that some people are still looking to file a 2021 return.

But he stressed that original payments were sent out in advance in 2021, and the only reason to receive the recovery rebate credit by filing a 2021 return now would be if someone didn't receive that money already.

Beginning in March 2021, the Internal Revenue Service began rolling out economic impact payments directly to families. These payments were advanced payments of the recovery rebate credit. You wouldn't claim the credit if you received all the money you were qualified to get when you were sent an economic impact payment.

The system of delivering the payments in 2021, Hetherwick noted, was more efficient because the IRS had completed the process in 2020 for earlier stimulus payments.

"Many people had provided the updated information needed to receive the initial $1,400 — or more depending on qualifying dependent situations — during the calendar year and didn't need to wait to file their tax return," Hetherwick said.

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In 2025, people who generally make $67,000 or less qualify for free tax help through the IRS's Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs.

Stimulus money can add up for families

You'd have to be careful now, if filing a 2021 return, not to claim the credit if you already received the stimulus money. Check your paperwork. See if you received the stimulus payments in advance. See if you filed a 2021 tax return and claimed the credit.

While most people received their money, some people didn't see those advance payments in 2021 for a variety of reasons and could claim the credit on 2021 returns.

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The recovery rebate credit would apply to all qualifying dependents claimed on a tax return. For example, married taxpayers who filed a joint return that claimed two qualifying dependents on the 2021 return could have qualified for up to $5,600.

The 2021 recovery rebate credit includes additional amounts for each qualifying dependent claimed on their return, not just children under 17.

Any recovery rebate credit received, according to the IRS, does not count as income when determining eligibility for federal benefits such as Supplemental Security Income, Supplemental Nutrition Assistance Program and more.

Not everyone qualifies for the maximum $1,400 a person

The amount of the credit could be reduced, even if you qualify, based on your income. If you made too much money, you might get only a partial credit or no credit at all.

The 2021 recovery rebate credit amount dropped to $0 pretty quickly, far more quickly than earlier stimulus programs, based on income.

A partial credit could apply if you enter the phaseout range and made more in 2021 than $75,000 for singles, $150,000 for married couples filing jointly and $112,500 for head of household.

Once your income climbs much above those amounts you could lose out entirely on the credit.

The recovery rebate credit is $0 for those who were single or married filing separately and made more than $80,000 in adjusted gross income, as found on Line 11 of your 1040 return for 2021.

The 2021 recovery rebate did not apply at all for married couples filing jointly or a qualifying widowers at $160,000 and higher. For head of household, the cutoff for receiving any money from the 2021 recovery rebate credit is $120,000.

Some late stimulus cash arrived out of the blue this year

The good news is that many people did receive this money during the pandemic when it was greatly needed. And some who qualified but didn't receive their money earlier got cash in the past few months, too.

Some 1 million taxpayers were set to receive stimulus cash out of the blue from the Internal Revenue Service back in December and January.

Those taxpayers filed a 2021 tax return three years ago but somehow they skipped claiming the much-talked-about stimulus credit. Most likely, they didn't realize they qualified.

Those who received the special payment a few months ago either left the line for the recovery rebate credit blank on the 2021 return or filled in a $0 when they were actually eligible for the recovery rebate credit.

Filers who received the automatic payments saw that money directly deposited into bank accounts; others received it by paper check in the mail. The IRS said it would send letters alerting taxpayers that the money is coming.

The IRS said it was taking a special step to issue the money to these taxpayers after the agency reviewed its internal data, which indicated eligibility. Eligible taxpayers in this group did not need to take action to receive this stimulus money by late January.

For example, parents of children born in 2021 who did not receive all of their stimulus money might be able to claim the recovery rebate credit for the child, depending on their income. But maybe they didn't do so.

Big money is ready to be claimed for other reasons

The recovery rebate credit isn't the only reason that 1 million or more people could want to file a 2021 federal income tax return by April 15, if they haven't already done so.

Taxpayers who didn't file federal returns have yet to claim $1.025 billion in federal income tax refunds for the 2021 tax year, according to IRS data.

Roughly 40,300 people in Michigan did not file their 2021 federal income tax returns, according to the IRS, and they are owed $37.3 million in refunds. Half of the people are owed more than $854 and half are owed less than that.

The refund money referenced in these statistics typically applies to taxes withheld out of paychecks or paid in 2021. It would not include any money from the recovery rebate credit that might apply to some tax filers on a 2021 return or cover a long list of other possible tax credits, such as the earned income tax credit, for those who qualify.

Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.