The pandemic was a turning point in society, it affected every single sector and the ripple effects are still being felt despite transitioning back from “the new normal” to just “normal” times. Luckly for those who were negatively affected and still have not recovered (there is plenty of people in that situation) there are still some subsidies that have not been claimed that they could still have access to if they hurry up.
Why would they need to hurry up? Well, because the Internal Revenue Service (IRS) has a hard line when it comes to claiming past tax returns and reliefs and that is three years. Since this year taxpayers will be filing for their 2024 tax returns, the earliest one they can claim will correspond to 2021. An additional reason to hurry is that tax season lasts until April15, and while that still gives people plenty of time to get their returns filed and squared away, it is something you do not want to leave until the last second.
The unclaimed IRS relief money from the pandemic
For the skeptics we would like to point out that according to records from the IRS there is still plenty of money left on the table from the pandemic era stimulus payment relief program. Around $1 billion due to some 1.1 million people remains unclaimed by the individuals who either chose not to claim it or did not know that they were entitled to it, which is a pity given that many could have definitely used that help when it was first offered.
Having said that, better late than never, and if you are one of the many individuals that has not filed a tax return since 2020 due to unemployment or underemployment now is you time to figure out if you are one of the eligible taxpayers. Do bear in mind that whatever money is not claimed at the end of this tax season will revert to the US Treasury, and while it will most definitely not be wasted there, it could do more good in the pocket of deserving taxpayers.
The money comes from the Economic Impact Payments (EIPs) that the government created during the pandemic. From March 2020 to March 2021 the government allocated $814 billion to help households around the country keep their heads above water, and while many people flocked to the payments immediately and received the relief as soon as it was announced, others mistakenly believed that it did not apply to them for various reasons. The money was split into three rounds of EIPs and payments were distributed as follows:
- CARES Act, which corresponds to March 2020 was the first payment
- $1,200 per tax filer
- $500 per child
- Consolidated Appropriations Act which corresponds to December 2020 was the second payment
- $600 per filer
- $600 per child
- American Rescue Plan Act which is the last one left to claim and the one that can be claimed this year for the last time, corresponds to March 2021.
- $1,400 per filer
- $1,400 per child
Do bear in mind that not everyone that did not claim their relief payment failed to file taxes, some taxpayers filed their 2021 taxes incorrectly, leaving the data field on the form blank or it filed as $0 by mistake. For those who were mistaken in their filing there were remedial measures put in place, there were notification letters and an accompanying payment to the value of $1,400 would be distributed to these individuals, but these were done via a check in the mail in 2023, so those who had moved in the interim and had not notified the IRS might still no have gotten the money.