U.S. taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax return may be in line to receive a stimulus check by the end of January, the Internal Revenue Service (IRS) has announced.
The decision follows a review of internal data, which revealed that many eligible taxpayers who filed their 2021 tax returns did not claim the credit. The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive one or more Economic Impact Payments (EIPs), also known as stimulus payments, during 2020 and 2021.
“After reviewing our internal data, we discovered that one million taxpayers overlooked claiming this credit, even though they were eligible,” said IRS Commissioner Danny Werfel in a news release. “To simplify the process and ensure these taxpayers receive their money, we’re making these payments automatic, so they won’t have to file an amended return.”
Also Read – New Retirement Age Rules Effective January 1, 2025: What You Need to Know
What Do Eligible Taxpayers Need to Do?
Eligible taxpayers do not need to take any action to receive their stimulus payments. The payments were sent automatically in December and should arrive by late January 2025.
Taxpayers will receive the payments either through direct deposit or as a paper check, the IRS confirmed.
How Can Taxpayers Determine if They Are Eligible?
Taxpayers can confirm their eligibility by reviewing their 2021 tax returns. If they left the Recovery Rebate Credit field blank or listed it as $0, they may be eligible for a payment.
Additionally, the IRS will send a separate letter to notify eligible taxpayers about their stimulus check.
How Much Will Eligible Taxpayers Receive?
The amount of the stimulus payments will vary, but eligible taxpayers could receive up to $1,400. The IRS is distributing a total of $2.4 billion nationwide as part of this initiative.
Also Read – Tax-Free Income Sources Every Retiree Should Know
What if Someone Didn’t File Their 2021 Tax Return?
Taxpayers who have not yet filed their 2021 tax return could still be eligible for the payment. To receive the Recovery Rebate Credit, they must file a tax return by the deadline of April 15, 2025, even if their income was minimal or non-existent, according to the IRS.
“Eligible taxpayers who haven’t filed must submit a tax return to claim the credit,” the IRS stated.
This initiative aims to ensure that taxpayers who missed out on the Recovery Rebate Credit during 2021 can still receive their due payments without the need for a complex filing process.
- ‘Deeply Unsettling’: Mother Accused of Drowning 7-Year-Old Daughter in California - April 30, 2025
- Manhunt Underway for Inmate Who Escaped Los Angeles County Facility - April 30, 2025
- Deltopia 2025 Sees Dramatic Rise in Arrests, Citations in SoCal - April 28, 2025
