Never received the 3rd $1,400 stimulus payment? Here’s what to do when filing taxes

(KTLA) – The IRS on Wednesday reminded filers to claim any missing round three stimulus payments on their 2021 tax return.

Tax season gives eligible people who never received the $1,400 payment the chance to claim it.

Since the IRS is no longer issuing economic impact payments, people who miss a stimulus payment or who received less than the amount to which they are entitled will have to claim a Salvage rebate credit on their 2020 or 2021 federal income tax returns, depending on the Internal Revenue Service.

Most eligible people have already received their stimulus payments and won’t have to include anything about the payment when they file their 2021 tax returns.

The IRS says it has issued more than 175 million third-round payments worth more than $400 billion to people across the country. Most of these payments were sent in the spring and early summer of 2021.

Yet many have not received their payments.

Authorities have identified 644,705 potentially eligible people who had not received payments totaling $1.6 billion, according to a report issued last week by the Inspector General of the Treasury for Tax Administration.

What to do if you never received the third payment

The IRS encourages residents to check their bank accounts first to make sure they never received the third payment, especially in early spring and summer 2021.

People can also access their IRS online account to see the total amount of Round 3 Economic Impact Payment they received. For married couples filing jointly, each person will need to log into their own online account.

Once people confirm they never received the payment, and their IRS online aAccounts show a payment amount greater than $0, or if they received a Notice 1444-C or Letter 6475, they should contact the IRS as soon as possible to see if a payment trail is needed.

But they don’t need to wait until their trail is complete to file their 2021 tax return, officials said.

When completing the Salvage Rebate Credit Worksheet, taxpayers have two options: either use the amount from letter 6475 (or the EIP 3 amount from the online account) to calculate the Salvage Rebate Credit amount on line 30, or use the amount of the stimulus payment the taxpayer believes he received to calculate the refund credit amount on line 30. (Details on this can be found here.)

Those who contact the IRS to trace the amount of the stimulus payment will receive notification of the results. If the taxpayer is found not to have received the money, the IRS will adjust the recapture report the rebate credit amount on the tax return and issue any refunds.

If people make a mistake calculating the payback refund credit and claim an amount on line 30 for the 2021 recovery refund credit, the IRS will need to correct the amount and send a notice of the changes. If that happens, there may be a delay in processing the return, officials said.

What if I have already filed my taxes?

An amended statement may be required to claim the credit if IRS records show that no payment was issued.

For eligible individuals who did not claim a salvage refund credit on their 2021 tax return (so line 30 is blank or $0), they will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return to claim the remaining amount of stimulus money — if IRS records don’t show they received a payment.

This includes people who believe they did not receive their full third-round economic impact payment because their situation in 2021 was different than in 2020.

People who are trying to determine if they need to change their original tax return can use this online tool.

More details on applying for the 2021 Recovery Rebate Credit can be found here.


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Elaine R. Knight