January Boost: Check if You Qualify for the $1,400 IRS Payout

Check if You Qualify for the $1,400 IRS Payout: The federal government approved three rounds of Economic Impact Payments (EIPs), commonly known as stimulus checks, during the COVID-19 pandemic to provide financial relief to Americans. The third and final round of payments, authorized under the American Rescue Plan in March 2021, allowed eligible individuals to receive up to $1,400.

Check if You Qualify for the $1,400 IRS Payout

While millions received their payments automatically, the IRS recently revealed that nearly one million taxpayers failed to claim their share.

To address this, the IRS is making automatic payments to eligible taxpayers who missed out on the 2021 Recovery Rebate Credit, ensuring they receive the money without the need for filing an amended return.

How the Stimulus Payments Worked

The IRS used taxpayers’ existing records to issue the stimulus checks. For those not in the agency’s database, the Recovery Rebate Credit was introduced, enabling them to claim the payment by filing a tax return the following year.

However, the IRS’s recent internal review found that approximately one million taxpayers who filed a 2021 tax return either left the Recovery Rebate Credit field blank or entered $0 despite being eligible.

Automatic Payments for Missed Stimulus Checks

To simplify the process, IRS Commissioner Danny Werfel announced that automatic payments will be sent to qualified taxpayers who missed claiming the credit. This eliminates the need for these individuals to go through the complex process of filing an amended return.

These automatic payments will be made to taxpayers who:

• Filed a 2021 tax return.
• Did not claim the Recovery Rebate Credit but were eligible for the third stimulus check.

What About Those Who Didn’t File a 2021 Tax Return?

Americans who didn’t file a 2021 tax return due to minimal or no income may still qualify for the Recovery Rebate Credit. To claim the money, they must file a 2021 tax return by April 15, 2025.

Additionally, filing a 2021 tax return could make some taxpayers eligible for a tax refund if they:

• Paid more taxes than owed.
• Qualified for other refundable tax credits, such as the expanded 2021 Child Tax Credit.

Child Tax Credit and Income Requirements

In 2021, the Child Tax Credit was temporarily increased under the American Rescue Plan. Taxpayers could receive:

• $3,600 per qualifying child aged 5 and under.
• $3,000 per qualifying child aged 6 through 17.

To be eligible for the 2021 Recovery Rebate Credit (third stimulus check), taxpayers had to meet the following income requirements:

• Single Filers: Income under $75,000.
• Head of Household Filers: Income under $112,500.
• Married Couples Filing Jointly: Income under $150,000.

A phaseout applied to higher income levels, with eligibility ending at:

• $80,000 for single filers.
• $120,000 for Head of Household filers.
• $160,000 for married couples filing jointly.

What Should Taxpayers Do?

Eligible taxpayers who already filed a 2021 return but missed claiming the Recovery Rebate Credit will automatically receive their payment. For those who didn’t file, submitting a 2021 tax return is essential to claim the credit and other possible refunds before the April 15, 2025 deadline.

Filing could also help taxpayers claim the expanded Child Tax Credit or recover any overpaid taxes from 2021.

The IRS’s efforts to issue automatic payments for unclaimed stimulus checks reflect its commitment to ensuring eligible Americans receive the financial assistance they deserve. With nearly one million taxpayers set to benefit, and many more still eligible to claim the Recovery Rebate Credit, it’s important for individuals to review their 2021 tax situation. Filing a tax return by the 2025 deadline could unlock valuable payments and credits, providing relief for those who missed out during the pandemic.

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