The Internal Revenue Service announced this Friday that it would send about 1 million people “special payments” totaling $2.4 billion. This is another effort to ensure that Americans do not miss out on the long-anticipated stimulus checks that the federal government has issued over the past few years.
“To minimize headaches and get this money into the pockets of eligible taxpayers, we are making this automatic payment.” People will not need to go through the extensive process of filing an amended return to receive it,” said IRS Commissioner Danny Werfel in a press release.
What to know about the $1,400 stimulus payments
It would be $1,400 as the maximum but may differ by individual based on their qualifications, according to the IRS. This was due to be attached to the three payments made during the time of the pandemic, owing to the fact that a few eligible Americans did not receive their full share.
The first two stimulus checks were delivered in the year 2020, while the last one was sent in the year 2021. Unfortunately, in all these cases, some people did not get their dues. This many people had a chance to lose the so-called “recovery rebate credit” through their 2021 income tax returns, which were designed to assist them if they didn’t receive their stimulus payments initially.
The IRS has said that most eligible taxpayers should have already received their stimulus funds, either by mail when the checks were initially sent or by later claiming the recovery rebate credit. But the current payment will cater to those awed discrepancies found after screening internal data of the agency, thereby ensuring that all those who filed tax returns but had no credit claimed receive their dues.
Who will receive the payment, and do you need to apply?
The Internal Revenue Service (IRS) are processing all eligible individuals under an automated system so that there will be no other application or action required on the part of the taxpayer. The agency also clarified that the number of payments would send approximately 1 million people who qualify for the recovery rebate credit but did not claim it on their 2021 tax returns.
The recipient will receive an official letter from the IRS, stating the eligibility of the recipient and also including the information regarding the amount that is going to be received.
Read more: 401k contribution boost for 2025: here are the new limits.
Timeline and delivery method
Disbursement of the payments is expected during December of the year 2024; the recipients will most likely receive the payments by the end of January 2025. Depending upon the individual, the funds will either be directly deposited into the respective bank account or will be mailed as a paper check.
Such an initiative signifies the resolve of the Internal Revenue Service in seeking resolution for some of the unfinished areas in the pandemic financial relief so that all eligible Americans can receive their benefits.
