$2.4 Billion Released by IRS: The IRS is ensuring that eligible Americans who missed out on the 2021 Recovery Rebate Credit receive their share of stimulus funds. Around one million taxpayers are set to receive payments of up to $1,400 by the end of 2024, as part of the government’s commitment to providing financial support. The effort aims to distribute $2.4 billion in payments automatically to those who qualify.
What Are These Payments About?
These payments are for individuals who qualified for the 2021 Recovery Rebate Credit but did not claim it on their tax return. The Recovery Rebate Credit is a refundable credit meant for Americans who were eligible for Economic Impact Payments (stimulus checks) but either didn’t receive them or didn’t claim the correct amount on their tax returns.
The IRS discovered through internal data that many taxpayers inadvertently left the Recovery Rebate Credit field blank or entered $0, even though they were eligible.
IRS Efforts to Simplify the Process
To make it easier for taxpayers, the IRS is automatically distributing these payments to those eligible, without requiring them to file an amended return.
IRS Commissioner Danny Werfel emphasized the agency’s dedication to helping taxpayers, saying:
“The IRS continues to work hard to make improvements and help taxpayers. These payments are an example of our commitment to go the extra mile for taxpayers.”
The first batch of payments was sent out in December, and most taxpayers will receive their funds by the end of January 2025.
Who Is Eligible for the Payments?
Automatic Payments
The IRS will automatically issue payments to:
- Taxpayers who filed a 2021 tax return but left the Recovery Rebate Credit field blank.
- Taxpayers who entered $0 for the Recovery Rebate Credit despite being eligible.
Those Who Didn’t File a 2021 Tax Return
Individuals who didn’t file a 2021 tax return but are eligible for the credit can still receive their payment by filing a 2021 tax return before April 15, 2025.
Even those with little or no income are eligible and must file to claim their credit.
Payment Details
- The maximum amount available is $1,400 per taxpayer, but the exact payment depends on the taxpayer’s filing status, income, and other factors.
- Payments will be either directly deposited into the taxpayer’s bank account or sent via paper check to the mailing address listed on their 2023 tax return.
- Taxpayers do not need to take any additional steps unless they need to file a 2021 tax return.
If a taxpayer’s bank account is no longer active, the payment will be returned to the IRS, and a paper check will be sent to their address instead.
Key Deadlines and Next Steps
Taxpayers who haven’t filed a 2021 tax return must file it by April 15, 2025, to claim the Recovery Rebate Credit.
For those eligible taxpayers who have already filed a 2021 return but missed claiming the credit, the IRS will handle the payments automatically—no action is required.
The IRS’s initiative to distribute automatic payments for unclaimed 2021 stimulus funds ensures that eligible taxpayers receive the financial assistance they deserve. With $2.4 billion being sent out, the program highlights the government’s commitment to alleviating financial hardships for Americans. If you believe you are eligible but haven’t filed a 2021 tax return, make sure to do so before April 15, 2025, to secure your payment.
FAQ’s
Who is eligible for the $1,400 stimulus payments?
Taxpayers who filed a 2021 tax return but did not claim the Recovery Rebate Credit, as well as those who have yet to file a 2021 return but meet the eligibility criteria, are eligible for these payments.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable credit for Americans who didn’t receive their full stimulus payments during 2021 or missed claiming them on their tax return.
How do I claim the 2021 Recovery Rebate Credit if I didn’t file a tax return?
You must file a 2021 tax return by April 15, 2025, to claim the Recovery Rebate Credit if you haven’t already done so.
Will the IRS send payments automatically?
Yes, the IRS will automatically send payments to taxpayers who filed a 2021 tax return but did not claim the Recovery Rebate Credit despite being eligible.
When will I receive my payment?
Most payments are expected to be sent out by late January 2025. Payments will be directly deposited or sent as paper checks, depending on the taxpayer’s filing details.
