The IRS is looking to make retroactive payments to US citizens who did not receive COVID-19 stimulus checks in the form of a tax refund. Not only that, but the renewed interest stems primarily from the Recovery Rebate Credit, stimulus-related payments, and other pandemic-era tax provisions that allowed taxpayers additional time to correct filing errors or submit returns. Although deadlines have passed for many programs, some taxpayers still have opportunities to recover money that they may have missed by filing for a tax refund.
The Taxpayer Advocate Service has warned that some taxpayers may need to act before a key deadline to preserve refund rights. But the question on everyone’s lips is, who qualifies for these COVID-19 tax refunds, and how much are they expected to get?
Qualifications For The COVID-19 Tax Refunds
During the COVID-19 pandemic, the US Congress authorized three rounds of Economic Impact Payments, commonly referred to as stimulus checks. The first payment, issued in 2020 under the CARES Act, provided up to $1,200 per eligible adult and $500 per qualifying child. A second round later that year delivered up to $600 per eligible person, while the third payment in 2021 increased benefits to $1,400 per individual and dependent.
However, there were taxpayers who never received one or more of these payments, or who received less than they were entitled to. These people were allowed to claim the funds through the Recovery Rebate Credit on their federal tax refunds. But the central issue now is not a new stimulus check. Rather, it is a mix of IRS guidance tied to the 2021 Recovery Rebate Credit and newer COVID-19 disaster-relief refund claims tied to court decisions and filing deadlines.
According to the IRS, the 2021 Recovery Rebate Credit was designed for people who did not receive the full third Economic Impact Payment. Separately, the Taxpayer Advocate Service says many taxpayers who may be entitled to COVID-19 disaster-relief tax refunds must file by July 10, 2026, to avoid losing the chance to claim them.
For the 2021 Recovery Rebate Credit, the IRS says taxpayers generally qualify if they were a US citizen or resident alien in 2021, were not a dependent on someone else’s return, and had a valid Social Security number or a qualifying dependent with a valid SSN or ATIN. The IRS also says the credit was reduced by the amount of the third Economic Impact Payment already received and phased out at higher income levels.
The IRS lists the 2021 income thresholds this way when it comes to eligibility for the COVID-19 tax refunds. First, the credit begins to phase out above $75,000 for single filers, $112,500 for heads of household, and $150,000 for married couples filing jointly. No credit is allowed when adjusted gross income reaches $80,000, $120,000, or $160,000, respectively. In practical terms, that means a qualifying person with no dependents could receive up to $1,400, while an eligible couple with qualifying dependents could receive up to $2,800 for the household, plus $1,400 per qualifying dependent.
Certain unemployment compensation was temporarily excluded from taxable income, and families benefited from an expanded Child Tax Credit that increased payments and extended eligibility to more households. Enhanced Earned Income Tax Credit provisions also boosted benefits for many lower-income workers. Some of these programs have already expired, but US taxpayers who failed to claim eligible credits previously may still have avenues to recover funds if they filed within applicable deadlines or corrected earlier returns.
The IRS also says some taxpayers who missed the credit on a filed 2021 return received automatic payments after an internal review. In December 2024, the agency said it was issuing automatic payments to about 1 million taxpayers, with a maximum payment of $1,400 per person and an estimated total of roughly $2.4 billion. Those payments were limited to taxpayers whose 2021 returns showed the credit as blank or zero, even though IRS data indicated they qualified.
The newer COVID-19 disaster-relief refund issue is broader and less familiar. The Taxpayer Advocate Service says that under the reasoning in Kwong v. United States, filing and payment deadlines tied to the COVID-19 federal disaster period may have been postponed, and some taxpayers may be entitled to refunds or abatements of penalties and interest. But the advocate warned that many taxpayers need to file a claim, amended return, original return, abatement request, or protective claim on or before July 10, 2026.
How To Know If You Qualify For Tax Refunds
For US citizens/residents who want to check their eligibility, the first thing to do is to identify which COVID-19 tax refund bucket you may fall into. If you are looking at the 2021 Recovery Rebate Credit, you should check your 2021 return, IRS account records, and any payment notices. The IRS says qualifying taxpayers generally claim the credit by filing Form 1040 or Form 1040-SR with the Recovery Rebate Credit worksheet.
If you are looking at the COVID-19 disaster-relief refund, the Taxpayer Advocate Service says taxpayers should review IRS transcripts and look for penalties, interest, or refund activity connected to the 2020-2023 disaster period. For claims involving fully paid interest and penalties, the IRS recently opened a new online submission option for Form 843 through IRS.gov for taxpayers with an Online Account, according to TAS, so check there.
Remember, qualifying for the tax refunds is fact-specific. A married couple may qualify even if only one spouse has a valid SSN in certain circumstances, and some taxpayers who were dependents in 2019 or 2020 may qualify based on 2021 status changes. On the other hand, estates, trusts, nonresident aliens, and people who could still be claimed as dependents generally do not qualify for the 2021 credit.
For background, readers can also review the IRS’s Recovery Rebate Credit FAQ and the IRS page on Coronavirus tax relief and economic impact payments. The Taxpayer Advocate Service has also published a detailed warning on the July 10 deadline here.
For more tax context, see our guides on tax basics.