Nearly one million Americans are set to receive automatic payments from the IRS, offering up to $1,400 in stimulus relief. This comes after the IRS identified taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns, which resulted in them missing out on much-needed stimulus money.
These automatic checks are part of the IRS’s initiative to distribute a total of $2.4 billion in stimulus funds, helping those who missed the credit claim despite being eligible. According to IRS Commissioner Danny Werfel, the agency is focused on making improvements and ensuring taxpayers receive all the financial support they are entitled to.
“The IRS continues to work hard to make improvements and help taxpayers,” said Werfel. “These payments reflect our dedication to going the extra mile for those who need it.”
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Who’s Eligible for the Stimulus Payments?
The Recovery Rebate Credit is available to those who did not claim one or more Economic Impact Payments (EIPs), or stimulus checks, on their 2021 tax return. The IRS found that many eligible taxpayers missed out on claiming the credit, despite being eligible for it.
Werfel explained, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”
In response, the IRS is automating the payments for eligible individuals, meaning they won’t need to file an amended return to receive the funds. The total amount to be disbursed through these payments is around $2.4 billion, with the IRS aiming to ensure that these checks reach taxpayers by the end of 2024.
How the Payment Process Works
Most taxpayers eligible for the Recovery Rebate Credit have already received their stimulus payments. However, this new round is aimed at those who missed the credit by leaving the Recovery Rebate Credit field blank or filled it out incorrectly on their 2021 returns. In addition, individuals who have not yet filed their 2021 tax return can still claim the credit by doing so before April 15, 2025, even if their income is minimal or zero.
For those eligible for the stimulus payment, no additional action is required unless they need to file their 2021 tax return. The IRS will automatically send out the payments, either via direct deposit or paper checks.
The total amount each taxpayer will receive is capped at $1,400, though the specific amount may vary depending on individual circumstances. If the payment cannot be deposited into a taxpayer’s bank account—perhaps because their account is closed—it will be returned to the IRS and re-sent to the taxpayer’s address.
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Keep an Eye Out for a Letter from the IRS
Eligible recipients will also receive a separate letter from the IRS informing them of their payment, offering an extra layer of transparency.
As the IRS works to process these automatic payments, it’s important to note that taxpayers don’t need to take any further action beyond filing a 2021 tax return (if necessary). For those who have already filed, payments will be automatically sent to the bank account listed on their 2023 tax return or to the address they recorded.
This effort highlights the IRS’s commitment to ensuring Americans get the financial support they need after the pandemic’s impact on their livelihoods. Whether you’re among those eligible or wondering about your own situation, make sure to stay up to date and file your returns as necessary to ensure you receive your fair share of relief.
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