Who Will Receive Automatic Stimulus Payments from the IRS?

A homeless man has been arrested for allegedly attempting to ignite a wildfire in Los Angeles using a flamethrower. This comes as the city deals with an ongoing wildfire crisis, with investigators looking into the causes of the fires that have already caused massive damage in the region.

In other news, the IRS is sending out surprise payments to eligible taxpayers who may have overlooked claiming the Recovery Rebate Credit on their 2021 tax returns. According to IRS Commissioner Danny Werfel, “One million taxpayers overlooked claiming this complex credit when they were actually eligible.”

Among the recipients is Ginny Bultman, 61, from Colorado, who and her husband did not receive a stimulus payment in 2021. After learning about the IRS initiative, she realized she qualified for the Recovery Rebate Credit. Just a day after contacting the IRS, she received her check in the mail, amounting to $4,200 for her family.

Here’s everything you need to know about the IRS payments:

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Who is eligible for a check?

The IRS is sending out payments to taxpayers who filed a 2021 tax return but left the Recovery Rebate Credit field blank or filled it out as $0 when they were actually eligible for the credit.

How much money will eligible taxpayers receive?

Payments will vary, but the maximum amount will be $1,400 per individual. In total, the IRS is distributing about $2.4 billion to those who failed to claim the credit on their 2021 tax returns.

Why is the IRS sending out stimulus checks?

The Recovery Rebate Credit is a refundable credit for individuals who didn’t receive Economic Impact Payments, also known as stimulus payments, in 2020 and 2021. The IRS discovered many eligible taxpayers missed out on the credit and decided to automatically send payments to those who overlooked claiming it.

“As we review our data, we realized that many eligible taxpayers left the credit unclaimed, so we’re making these payments automatic, so people don’t have to go through the trouble of filing an amended return,” Werfel said.

How will I receive my payment?

If you qualify for the Recovery Rebate Credit, you don’t need to take any action. The IRS will send letters to notify eligible taxpayers. Payments will be issued automatically this month and should be received by direct deposit or check by late January. The funds will be sent to the bank account listed on the taxpayer’s 2023 return or the address the IRS has on file.

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What if I haven’t filed my 2021 tax return?

You can still receive the payment if you file a tax return and claim the Recovery Rebate Credit by the deadline of April 15, 2025, even if your income was minimal or nonexistent.

How many rounds of COVID stimulus payments were there?

There were three rounds of stimulus payments distributed to households affected by the pandemic, totaling $814 billion. The amounts recipients received were based on income, tax filing status, and the number of dependents:

  • In March 2020, individuals received up to $1,200 and $500 per child under the CARES Act.
  • In December 2020, individuals received up to $600 and $600 per child under the Consolidated Appropriations Act.
  • In March 2021, individuals received up to $1,400 and $1,400 per child under the American Rescue Plan Act.

These payments were aimed at providing financial relief during the pandemic.

Lailyah Duncan

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