The IRS has revealed plans to send automatic payments of up to $1,400 to over one million eligible taxpayers who missed out on the Recovery Rebate Credit in 2021. These payments, aimed at addressing unclaimed Economic Impact Payments (commonly known as stimulus checks), will provide critical financial relief for many individuals and families.
What Are Recovery Rebate Credits?
The Recovery Rebate Credit was introduced during the COVID-19 pandemic as part of federal relief efforts. It allowed taxpayers who missed their Economic Impact Payments to claim the money on their tax returns. Unfortunately, many eligible individuals overlooked this option, either leaving the claim blank or entering incorrect information.
Who Will Receive the Payments?
The IRS will automatically send these payments to taxpayers who:
- Filed a 2021 tax return but did not claim the Recovery Rebate Credit.
- Meet the eligibility criteria based on income and other factors.
Each eligible taxpayer can receive up to $1,400, with payments expected to arrive between December 2024 and late January 2025. The IRS will notify recipients with official letters explaining the details.
What If I Haven’t Filed My 2021 Taxes?
If you didn’t file a 2021 tax return, it’s not too late to claim your Recovery Rebate Credit. You have until April 15, 2025, to submit your return and potentially secure your payment. Even if you have little to no income, filing could ensure you don’t miss out.
What Should You Do Now?
- Watch your mail for IRS notifications about these automatic payments.
- If you haven’t filed your 2021 taxes, act before the April deadline.
- Confirm that your banking details or mailing address are up-to-date with the IRS to avoid delays.
IRS Pledges to Assist Taxpayers
Danny Werfel, the IRS Commissioner, emphasized the agency’s commitment to helping taxpayers:
“These payments are an example of our ongoing effort to support individuals who might otherwise be left out. We’re dedicated to ensuring everyone receives the benefits they’re entitled to.”
Don’t miss this opportunity! Check your eligibility and stay informed about updates from the IRS.
