Janice R. Andrews
The IRS has announced it will automatically send payments of up to $1,400 to one million taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. These payments require no action from eligible recipients.
Who Is Eligible for the Payment?
The payments are going to taxpayers who either left the Recovery Rebate Credit section incomplete or made errors on their 2021 returns, even though they were entitled to receive the money. IRS Commissioner Danny Werfel explained, “We discovered that one million taxpayers missed out on this credit. To make it easier, we’re issuing automatic payments to those who qualify.”
When Will Payments Be Distributed?
Payments began earlier this month, with recipients receiving a letter notifying them of the payment. By the end of January, payments will be made either by direct deposit or paper check. Funds will be sent to the bank account listed on the 2023 tax return, or a check will be mailed to the address on file if the account is closed.
What If I Didn’t File a 2021 Return?
Taxpayers who didn’t file a 2021 return can still receive the payment by submitting a return before April 15, 2025.
Overview of Past Stimulus Payments
During the COVID-19 pandemic, the federal government issued three rounds of stimulus checks. The first payment was $1,200, the second was $600, and the third, $1,400, was issued in 2021.
Individuals who didn’t receive the full amount could apply for the Recovery Rebate Credit to claim any remaining funds.
The Financial Impact of This Latest Payment
The IRS expects to send out approximately $2.4 billion in payments in the coming weeks. This initiative reflects the agency’s effort to ensure eligible taxpayers receive their funds without needing to file an amended return.
Make sure to check your bank account or mailbox for notification from the IRS, and if you haven’t filed your 2021 return, consider doing so soon to claim your payment.
