The Internal Revenue Service announced today that the IRS will make approximately one million more automatic payments worth up to $1,400 to individuals who did not originally claim the Recovery Rebate Credit in their 2021 tax return. Affecting several persons, it is an effort by the authorities to help individuals who missed getting their COVID-19 stimulus payments in time. Beginning this month, the total comes close to $2.4 billion.
“When we looked at our internal data, we found that many eligible taxpayers did not claim the Recovery Rebate Credit even though they qualified for it,” said IRS Commissioner Danny Werfel. “To make sure these people get the financial assistance they qualify for, we’re making these payments automatic, so they don’t have to file amended returns.”
Payment details
Eligible taxpayers will receive these special payments without any action on their part. Payments will be made either through direct deposit or in the form of paper checks and will be mailed by the end of January 2025. The IRS has already started to process some of the payments, and many recipients should see the funds show up in their bank accounts soon.
The amount will be $1,400 per person, but that depends on the individual factors. Taxpayers will also receive an IRS notice informing them of their eligibility and the payment amount.
Who is eligible?
To receive these special payments, the Recovery Rebate Credit, the person must:
- Have a filed 2021 tax return.
- Not claimed the Recovery Rebate Credit on that return.
- Income falls within IRS-set limits.
- Had a valid bank account or mailing address on their latest tax return.
The Recovery Rebate Credit is available to taxpayers who did not receive one or both of the Economic Impact Payments during the pandemic. Since many eligible taxpayers may have reported the credit field as blank or “$0” due to not fully understanding it, there will be
Deadline nears for those who haven’t filed
The IRS also reminds those who have not filed their 2021 tax returns yet to do so by April 15, 2025 as stated with this article, Last chance to apply for COVID-19 pandemic stimulus checks – Make sure you don’t lose your IRS money before it’s too late. Filing a return may allow them to claim the Recovery Rebate Credit and other refunds they might be eligible for. Even if a taxpayer’s income was low or zero during that year, they must file a return to claim these credits.
“Filing your tax return is essential if you think you may qualify for credits,” said Commissioner Werfel. “We want to make sure every taxpayer receives the benefits they’re eligible for.”
How payments will be applied
The payments will be made to the bank account on taxpayers’ 2023 tax returns or by check to their address of record. If a taxpayer’s bank account has changed since the last return was filed, any returned payments will be reissued as checks mailed to their current address.
Taxpayers can track their payment by using the IRS’s “Get My Payment” tool on the IRS website.
Read more:
