Your Free Guide to Claiming Unclaimed Stimulus Money

Your Free Guide to Claiming Unclaimed Stimulus Money

What to Do About Unclaimed Stimulus Money

The federal government began rolling out stimulus checks in April 2020, but some Americans did not receive their payments. These checks, which were also known as Economic Impact Payments (EIPs), came in the wake of steep unemployment numbers due to the COVID-19 pandemic. 

In this guide, you will learn about the COVID-19 stimulus checks that were made available from the federal government, including the most common reasons for missing owed money and how to claim these payments. Additionally, some states have approved or plan to introduce their own separate stimulus payments or tax rebate programs for qualifying residents throughout 2024. 

Is the federal government still sending stimulus checks?

As of this writing, the federal government has not approved any additional stimulus payments beyond the three Economic Impact Payments (EIPs) that were sent out throughout 2020 and 2021. However, those who qualified for EIPs and did not receive them may still be able to collect payments. These are known as unclaimed stimulus payments.

Are states providing stimulus checks?

Since the start of the COVID-19 pandemic in 2020, many states created separate stimulus check or tax rebate programs that provided additional financial relief to residents in need. Most state-specific aid programs have since expired, but some states may still have separate stimulus payments or tax rebates available for residents who meet the criteria.

Depending on the state, these payments could be issued in the form of a stimulus check or as a tax rebate. Currently, here are the states with active relief or rebate programs:

• Arizona

The Arizona Families Tax Rebate is a one-time payment for eligible individuals and families residing in Arizona. This rebate comes as a result of the 2023 budget. To qualify, residents must meet the following requirements:

• Filed an Arizona full-year resident personal income tax return for tax year 2021
• Claimed at least one dependent tax credit on their tax year 2021 return
• Filed a 2021 tax year Arizona personal income tax return as the only taxpayer on their single, married filing separate, or Head of Household return, or as the primary or first-listed taxpayer, if they filed a married filing jointly return
• Had at least $1 in Arizona personal income tax liability in tax year 2021, 2020, or 2019

Arizona residents interested in finding out whether they qualify, update their address or file a claim for a rebate can use the AZ Families Tax Rebate Claim Portal found here: https://familyrebate.aztaxes.gov/

To learn more about this rebate, visit the Arizona Department of Revenue website here: https://azdor.gov/individuals/arizona-families-tax-rebate

• Michigan

The expanded Earned Income Tax Credit (EITC) for Working Families will become effective in February 2024. These rebate checks are based on previous state tax returns and expand the maximum credit amount, which means some qualifying residents could get money back on taxes they have already paid in previous years.

In order to qualify for the Michigan EITC, taxpayers must qualify for the federal EITC. This means they must file a federal tax return and state tax return, even if they do not normally do so. They must also:

• Be a Michigan resident or part-year resident with or without earned income in the state, or
• Be a nonresident with taxable Michigan income.

The total credit amount for which an eligible taxpayer might qualify depends on several factors, including:

• Annual income;
• Tax filing status;
• Number of qualifying children being claimed as a dependent; and
• Whether the taxpayer has a disability.

The maximum Michigan EITC is 30% of the maximum federal EITC amount, which changes every year due to inflation. For tax year 2023 (which must be filed by April 15, 2024), the maximum Michigan EITC is $2,229.

To learn more about the Michigan EITC, visit the webpage here: https://www.michigan.gov/taxes/iit/eitc

Economic Impact Payments Explained

Economic Impact Payments (EIPs), more commonly referred to as “stimulus checks,” were part of the Coronavirus Aid Relief and Economic Security (CARES) Act passed by Congress in 2020. This legislation aimed to directly help Americans recover financially from problems related to the COVID-19 pandemic. 

The first stimulus payments were issued in April 2020. The second wave came in December of the same year. The third and most recent wave of stimulus checks was issued starting in March 2021 and continued to be sent out throughout the year as tax returns were processed.

In order to receive a stimulus check, you were required to meet certain eligibility criteria, which differed slightly depending on when the stimulus check was approved. The amount of your payment also varied depending on your income. Continue reading the sections below to learn what was required to qualify for EIPs and how to calculate stimulus check amounts and unclaimed stimulus payments.

Eligibility for Stimulus Checks

Eligibility for stimulus checks depends on the following factors:

1. Residency Status: To receive a stimulus check, you must be a U.S. citizen, permanent resident or qualifying resident alien or be a part of a household with at least one member that is.

2. Taxpayer Status: You cannot be claimed as a dependent of another taxpayer.

For example, a student or child who is claimed on a parent’s tax return is not eligible to receive a payment on their own accord. The parent who claims the child was entitled to receive a monetary bonus ($500 in the first wave of EIPs; $600 in the second wave; $1,400 in the third wave) for each qualifying child they claimed as a dependent.

3. Social Security Number (SSN): At least one person within a household must have a Social Security Number (SSN) that is valid for employment. Unlike the previous two stimulus checks, mixed households qualify for the third EIP. 

If your SSN card states “Not Valid For Employment,” and your immigration status has changed since the date your card was issued, you must request a new card from the Social Security Administration (SSA). 

4. Income: Your adjusted gross income (AGI) was used to calculate your eligibility for stimulus checks. For 2021 stimulus checks, you must use your AGI from the 2020 tax year. For previous stimulus checks from 2020, you must use your AGI from the 2019 tax year. Find your AGI on line 8b of Form 1040, which is part of your tax return.

To receive the total approved amount of stimulus money for the first two EIPs, your income cannot have been higher than:

• $150,000, if you were married and filed a joint tax return.
• $75,000, if you were filing an individual tax return. 

If your income was higher than $198,000 and you were married and filing a joint tax return, you do not qualify for stimulus check 1 or 2. 

If your income is higher than $99,000 and you are filing as an individual, you do not qualify for stimulus check 1 or 2.

If your income exceeded the limits but was lower than $198,000 or $99,000 respectively, you may still have been eligible to receive a reduced stimulus check from the first two EIPs. See the section directly below to learn how to calculate your estimated amount.

Note: Income limits were different for the third economic impact payment.

• If your income was higher than $160,000 and you were married and filed a joint tax return, you generally did not qualify for stimulus check 3.
• If your income was higher than $80,000 and you filed as single, you generally did not qualify for stimulus check 3.
• If your income was higher than $120,000 and you filed as head of household, you generally did not qualify for stimulus check 3.
• If your income exceeded the limits but was lower than $160,000, $80,000 or $120,000, respectively, you may have still been eligible to receive a reduced stimulus check for the third EIP

How much were stimulus checks?

The first stimulus payments were a maximum of $1,200 per individual, $2,400 per married couple and an extra $500 per each qualifying child (dependent). 

The second wave of payments offered $600 per individual, $1,200 per married couple and $600 per each qualifying child. 

The third wave of payments offered $1,400 per individual, $2,800 per married couple, and $1,400 per each qualifying child. 

Some married couples who filed a joint tax return in 2020 may have received the third stimulus payment in two separate payments. The first payment may have been issued in the form of a direct deposit, while the second payment may have been issued as a paper check mailed to the address provided on the most recent tax return.

It is important to understand that you may not be entitled to the full amount of each stimulus check. The amount of money you could have received varies depending on your income.

For the first two EIPs, the total amount was reduced by $5 for every $100 dollars that your 2019 adjusted gross income (AGI) exceeded the income threshold. To see the income thresholds, refer to the income requirements provided directly above.

For example, if you were married and filed a joint tax return, your income must have been at or below $150,000 to receive the full amount of the stimulus check. If your AGI was $155,000, you were $5,000 above the threshold. Now you must find the amount by which your payment is reduced.

Divide $5,000 by $100 and the result is 50 (this is the amount your income exceeded the threshold, expressed in hundreds).

Multiply the result 50 by $5 (since the check would have been reduced by $5 for each $100 dollars over the threshold) and you get $250.

Using the example above, your stimulus check would have been reduced by $250. 

For the third stimulus check, if your income exceeded the AGI limits but was lower than $160,000, $120,000 or $80,000, respectively by filing status, you should have received a reduced payment amount. 

How Stimulus Payments Are Issued

The federal government issued stimulus payments in the following ways:

• Direct deposit into your bank account
• Payments by mail

If you filed a tax return for 2018, 2019 or 2020 and you included your bank account information on your tax return, you should have automatically received your stimulus payments by direct deposit into the bank account on file with the Internal Revenue Service (IRS). 

If you meet any of the criteria listed below, you likely received your stimulus money in the mail instead:

• The IRS does not have your bank account on file.
• Your bank account was recently closed.
• You did not file a tax return. 

Stimulus money sent in the mail generally arrives in the form of a paper check or a prepaid debit card. The debit card, known as an Economic Impact Payment Card, is sent in a white envelope displaying the U.S. Department of the Treasury seal so that recipients know it is authentic.

The way in which you received your first stimulus payment may be different from the way in which you received your second or third stimulus payments.

IRS Letters (Notice 1444, 1444-B and 1444-C)

After you received an Economic Impact Payment (EIP) from the federal government, you should have received a letter confirming the amount of the payment. These letters, known as “Notices,” also provide information about reporting missed or incorrect payment amounts.

• Notice 1444 applies to the first round of stimulus payments. 
• Notice 1444-B applies to the second round of stimulus payments.
• Notice 1444-C applies to the third round of stimulus payments.

You should keep these notices in your files, as you can refer to them during the next tax filing season and use them to claim additional credits or payments if you are eligible for them.

How to Claim Owed Stimulus Money

Many Americans reported missing or incorrect stimulus payments. If you have not received one or more Economic Impact Payments (EIPs), did not see your dependents reflected in your payment amounts or received less than the amount you believe you are owed, you may still be able to claim them through the Recovery Rebate Credit. 

Most qualifying taxpayers who have already filed a tax return for 2020 or 2021 already received this rebate credit in previous tax refunds. If you did not file for these years but are eligible to claim the credit, it’s not too late to file a past-due tax return. 

Note that filing a 2020 or 2021 tax return in 2024 means that you are subject to penalties, so even if you did qualify for an EIP, there is a chance that the IRS will hold onto it as penalty for filing late.

• If you’re eligible to claim the 2020 Recovery Rebate Credit, you must file a tax return by May 17, 2024.
• If you’re eligible to claim the 2021 Recovery Rebate credit, you must file a tax return by April 15, 2025.

Even if you normally do not need to file a tax return, you must file in order to claim the credit and receive your missing stimulus payment. That’s because, unlike the stimulus checks that were distributed in 2020 and 2021, these missing payments will be included in a tax return.

Learn how to claim your owed stimulus money in the sections below.

The Online Non-Filer Tool Is Now Closed

The IRS Non-Filer Tool was the previous method for registering for unclaimed stimulus checks. The tool is now closed. Currently, the only way to receive unclaimed stimulus checks owed to you is to apply for the Recovery Rebate Credit when filing a 2020 or 2021 tax return if you have not yet filed.

Filing Form 1040 or 1040-SR for the Recovery Rebate Credit

If you did not receive the full amount of either stimulus check, you may still be able to get the Recovery Rebate Credit when you file your 2020 or 2021 tax return, only if you have not yet filed for those years. This is considered a late return and is subject to penalties, so even if you qualified, there is a chance that the IRS will hold onto your refund as penalty for filing late.

The full amounts of each stimulus payment are listed below:

• First stimulus checks – $1,200 per individual, $2,400 per married couple and $500 per qualifying child
• Second stimulus checks – $600 per individual, $1,200 per married couple and $600 per qualifying child
• Third stimulus checks – $1,400 per individual, $2,800 per married couple and $1,400 per qualifying child

The Recovery Rebate Credit applies the Economic Impact Payments (EIPs) that you were eligible for but did not receive to your 2020 or 2021 tax return, whichever year you are filing. Essentially, it is a tax credit that will increase the amount of your tax refund (if you are eligible for a refund) or decrease the amount of the tax you owe (if you owe taxes).

If you did not file an income tax return for the tax year 2020 or 2021, and you believe you are entitled to a Recovery Rebate Credit, you must file a past due tax return in the same way you would file an on-time tax return. Learn more about past due tax returns on the IRS website here: https://www.irs.gov/businesses/small-businesses-self-employed/filing-past-due-tax-returns

Form 1040 is the general tax return document for all taxpayers. Form 1040-SR is a special tax return document for seniors that includes senior-specific forms of income and displays a larger font.

Follow the steps below to learn how to complete a paper Form 1040 or Form 1040-SR:

1. Download Form 1040 here: https://www.irs.gov/pub/irs-pdf/f1040.pdf 

If you would like to fill out form 1040-SR, you can access it here: https://www.irs.gov/pub/irs-pdf/f1040s.pdf 

2. Complete the form using the Line by Line Instruction Manual.

Access the instruction manual here: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf 

Use the Recovery Rebate Credit Worksheet on page 59 of the instruction manual to calculate the amount of stimulus money you are owed. 

3. Mail the form and any required payment to the IRS.

The address to which you must mail your tax return depends on your state. Additionally, the address to which you must send your tax return depends on whether or not you are enclosing a payment. 

View a state-by-state list of addresses on the IRS website here: https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment  

If your income is at or below $73,000, you may be able to file your tax return online for free using IRS Free File. Access the Free File system here: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

You may also choose to prepare your tax return using commercial software or authorized e-File providers. Search for authorized providers here: https://www.irs.gov/e-file-providers/authorized-irs-e-file-provider-locator-service-for-tax-professionals 

A Note on U.S. Territories

If you reside in one of the following areas, do not complete the Recovery Rebate Credit Worksheet and do not fill in line 30 on Form 1040 or Form 1040-SR:

• American Samoa
• The Commonwealth of Northern Mariana Islands
• Guam
• Puerto Rico
• U.S. Virgin Islands

Each U.S. Territory is responsible for determining who qualifies for the Recovery Rebate Credit. If you have any questions about this credit, consult the tax authority in your territory of residence. 

I still haven’t received my stimulus money. What else can I do?

If you still have not received your stimulus money and have exhausted all the options above, you can contact the IRS live phone assistance hotline at:

Future Stimulus Payments

Now that the economy has rebounded slightly from the impact of the COVID-19 pandemic, future rounds of stimulus payments have not been announced. However, this does not mean that there won’t be any more announced in the future.

The status of future stimulus payments changes frequently. For the most accurate and up-to-date information regarding stimulus payments, visit the IRS website at https://www.irs.gov/coronavirus/economic-impact-payments.