The $1,400 stimulus check, part of the third round of Economic Impact Payments (EIPs) issued in 2021, provided much-needed relief to millions of Americans during the COVID-19 pandemic.
However, as the deadline to claim this payment approaches, many people are left wondering: Can the IRS fine you for collecting the $1,400 stimulus payment if you weren’t eligible?
The answer is yes — if you claimed the payment incorrectly or fraudulently, you could face penalties, interest charges, and repayment demands. Here’s what you need to know before claiming the Recovery Rebate Credit.
The $1,400 Stimulus Payment: A Recap
As part of the American Rescue Plan Act of 2021, the IRS issued a third stimulus check worth $1,400 per eligible adult and dependent. Most people received the payment automatically through direct deposit, checks, or prepaid debit cards.
But not everyone got their payment on time. To help those who missed it, the IRS introduced the Recovery Rebate Credit, which allows taxpayers to claim the stimulus amount on their 2021 federal tax return.
According to the IRS, approximately 1 million Americans still haven’t claimed their third stimulus payment and are running out of time to do so. The deadline to file a 2021 tax return and claim the credit is April 15, 2025.
Who Is Eligible to Claim the Recovery Rebate Credit?
To claim the $1,400 credit, you must meet the following criteria:
- You were a U.S. citizen or resident alien in 2021.
- You did not receive the full $1,400 stimulus payment.
- Your adjusted gross income (AGI) was below:
- $75,000 (individual)
- $112,500 (head of household)
- $150,000 (married filing jointly)
Even if you had little or no income in 2021, you may still be eligible. Non-filers — especially low-income individuals — are encouraged to submit a return to determine eligibility.
Use the IRS Recovery Rebate Credit tool to check your eligibility.
Penalties for Incorrect or Fraudulent Claims
Claiming the $1,400 credit when you’re not eligible can result in severe consequences. The IRS has systems to detect duplicate or fraudulent claims. If you’re caught:
- You’ll be required to repay the amount received.
- You’ll face a 20% penalty on the improperly claimed amount.
- You may also incur daily compounding interest on the total due.
For example, if you wrongly claim the full $1,400 payment, the penalty alone would be $280 — not including interest.
The IRS may also audit your return, leading to further scrutiny of past and future filings. Tax fraud could result in additional legal consequences, including civil or criminal charges in severe cases.
Read more about IRS penalties and fraud enforcement at IRS.gov – Understanding Your IRS Notice or Letter.
How to Avoid Mistakes When Claiming the Credit
- Check Your IRS Account
Use your IRS online account to verify if the $1,400 payment was already issued to you in 2021. Many people mistakenly claim the credit without realizing the payment was received via mail or direct deposit. - Review IRS Notices
Refer to IRS Notice 1444-C, which confirms receipt of the third stimulus payment. If you got this notice, you likely already received the payment. - File an Accurate Return
Be honest and thorough on your 2021 tax return. If unsure, seek professional tax advice or assistance from a certified tax preparer. - Use IRS Free File or Trusted Software
The IRS Free File program offers step-by-step guidance for eligible filers, helping reduce errors.
Why the Deadline Matters
With the April 15, 2025 deadline quickly approaching, now is the time to act if you believe you missed the $1,400 payment. Once this deadline passes, the window to claim the credit closes permanently, and the money may be forfeited.
Don’t leave cash on the table — but also, don’t risk penalties by filing falsely. Double-check everything and make sure you’re entitled to the funds.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Himanshu Sharma writes for Weekend Spy, focusing on recruitment, government schemes, and current affairs. He is dedicated to making complex information accessible to readers.
Himanshu enjoys playing chess, hiking, and trying new recipes, always seeking ways to combine his love for writing with his passion for exploration. Connect with Drop him an email at [email protected].
