In a welcome financial boost for many Americans, the IRS is distributing special payments of up to $1,400 to around one million taxpayers. These payments, part of the Recovery Rebate Credit (RRC), aim to provide relief to those who missed out on previous stimulus checks during the COVID-19 pandemic.
What Is the Recovery Rebate Credit?
The RRC is a refundable tax credit designed for individuals who didn’t receive their full stimulus payments, also called Economic Impact Payments (EIPs), during the pandemic. While most people received these payments automatically, some eligible taxpayers missed out due to various reasons, such as filing errors or delays.
Who Qualifies for These Payments?
If you filed a 2021 tax return but left the RRC field blank or incorrectly entered $0, you might be eligible. The IRS has already identified these cases, so there’s no need for additional paperwork. Each eligible individual can receive up to $1,400, with the total disbursement estimated at $2.4 billion.
When Will Payments Arrive?
The IRS started processing these payments in December 2024, and most recipients can expect them by late January 2025. Payments will be sent through direct deposit or paper checks, depending on the details provided in your 2021 tax return. Additionally, the IRS will mail letters explaining the payment to recipients.
What If You Haven’t Filed Yet?
For those who haven’t filed their 2021 taxes, it’s not too late. You have until April 15, 2025, to file and claim your credit. This is especially important for individuals with little or no income, who may still qualify for these payments.
Beware of Scams
The IRS will not call, email, or text you about these payments. If someone asks for personal or financial information regarding the RRC, it’s likely a scam. Always rely on official IRS communications.
A Win for Taxpayers
This initiative ensures that eligible taxpayers won’t miss out on the financial relief they deserve. The IRS is streamlining the process to make it as hassle-free as possible. If you believe you’re eligible, keep an eye out for your payment and confirm your details on the official IRS website.
