$2.4 Billion in Stimulus Money Available in NJ: New Jersey residents who missed out on the 2021 COVID-19 stimulus payments have a reason to celebrate. The IRS has announced that up to $1,400 will be distributed to taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax returns. This is part of an effort to ensure eligible taxpayers receive funds they were entitled to but overlooked during the pandemic.
$2.4 Billion in Stimulus Money Available in NJ
Here’s everything you need to know about these payments, eligibility, and what steps to take if you still haven’t received your money.
Why Are These Stimulus Payments Being Issued?
The IRS identified approximately 1 million taxpayers who were eligible for the 2021 Recovery Rebate Credit but didn’t claim it on their tax returns. These payments are being sent automatically to correct that oversight.
According to IRS Commissioner Danny Werfel, many taxpayers may have skipped the credit because it was a “complex credit,” and the data field was left blank or filled in as “$0.”
These payments are part of the American Rescue Plan Act of 2021, which authorized up to $1,400 per individual and additional amounts for dependents.
Who Is Eligible for the Payments?
Most taxpayers who were eligible for stimulus payments under the Recovery Impact Payments program have already received their funds. However, these new payments are being sent to:
- Taxpayers who filed a 2021 return but:
- Left the Recovery Rebate Credit field blank, or
- Incorrectly entered “$0” when they were actually eligible.
- Non-filers in 2021:
Individuals who didn’t earn enough to file a 2021 tax return may still qualify. However, they must file a 2021 return by April 15, 2025, to claim the Recovery Rebate Credit.
How Much Money Will You Receive?
The maximum payment amount is $1,400 per individual. If you have dependents, you could receive an additional $1,400 for each qualifying dependent.
When Will Payments Arrive?
The IRS has begun processing these payments, and New Jersey residents should expect to see them in their:
- Bank accounts (via direct deposit) or
- Mailboxes (as paper checks)
Payment Timeline:
- Payments will begin arriving in late January 2025.
Delivery Method:
- Direct Deposit: Payments will be sent to the bank account listed on your most recent tax return (2023).
- Paper Checks: If no bank account is on file, the IRS will mail a paper check to the address listed with your 2023 tax return.
The IRS is also notifying taxpayers via mail if they qualify and providing details about how their payment was calculated.
What If You Didn’t File a 2021 Tax Return?
If you didn’t file a tax return in 2021, there’s still time to claim your stimulus payment. Here’s what you need to do:
- File a 2021 Tax Return:
- Submit a return to the IRS by April 15, 2025.
- Include information about your income, tax filing status, and dependents.
- Check Your Eligibility:
- Visit the IRS’s dedicated web page for Recovery Rebate Credit information to determine if you qualify.
Even individuals with no or minimal income who weren’t required to file taxes must submit a return to claim the credit.
A Look Back: Previous Stimulus Payments
During the pandemic, the U.S. government distributed more than $814 billion in relief through three rounds of stimulus payments:
- CARES Act (March 2020):
- Up to $1,200 per individual
- $500 per child
- Consolidated Appropriations Act (December 2020):
- Up to $600 per individual
- $600 per child
- American Rescue Plan Act (March 2021):
- Up to $1,400 per individual
- $1,400 per dependent
Conclusion
New Jersey residents who missed out on their 2021 stimulus payments now have a second chance to receive the funds they’re entitled to. Whether you’ve already filed a tax return or need to file one for 2021, make sure to act before the April 15, 2025 deadline to claim your Recovery Rebate Credit.
These payments, which can be as much as $1,400 per individual, offer an opportunity to manage financial challenges, pay down debt, or save for the future. If you’re unsure about your eligibility or how to file your taxes, consider consulting a tax professional or using free tax assistance resources.
Be proactive and ensure you don’t miss out on this much-needed financial support.
FAQ’s
Who is eligible for the $1,400 stimulus payment in New Jersey?
New Jersey residents who missed out on the 2021 Recovery Rebate Credit because they didn’t claim it or filed incorrectly are eligible. Non-filers must submit a 2021 tax return by April 15, 2025, to qualify.
How will the IRS deliver the stimulus payments?
The IRS will send payments via direct deposit to the bank account on file or as a paper check to the address listed in your 2023 tax return.
When will New Jersey residents receive their stimulus payments?
Eligible New Jersey residents should receive their payments by late January 2025, according to the IRS.
What if I didn’t file a 2021 tax return?
If you didn’t file a 2021 tax return, you must file one by April 15, 2025, to claim the Recovery Rebate Credit and receive the stimulus payment.
What were the previous stimulus payment amounts?
Under the CARES Act, payments were $1,200 per individual and $500 per child. The American Rescue Plan Act provided up to $1,400 per individual and $1,400 per child.
