Millions of Americans are in for a pleasant surprise this month as the IRS is issuing direct deposits of up to $1,200. If you missed out on the stimulus payments from the past few years, this could be your chance to get the money you’re owed.
The payments are part of a continued effort by the IRS to distribute unclaimed Recovery Rebate Credit (RRC) funds from 2021. Many taxpayers who qualified for these payments either didn’t file for them or made errors on their tax returns. Now, the IRS is automatically sending out the money to those who were eligible but didn’t receive it.
Why Is the IRS Sending Out These Payments?
During the COVID-19 pandemic, the government sent out three rounds of stimulus checks to help Americans financially. The final round, issued in 2021 under the American Rescue Plan, provided up to $1,400 per eligible person. If you didn’t get your full payment back then, you may have been entitled to claim the amount as a tax credit when you filed your 2021 taxes.
The problem? Many people either forgot to claim the credit or didn’t realize they were eligible. The IRS has identified these cases and is now sending out the payments automatically.
Who Qualifies for the $1,200 Payment?
To be eligible for this round of payments, you must have:
- Filed a 2021 tax return but either left the Recovery Rebate Credit blank or entered $0 when you were actually entitled to it.
- Had an adjusted gross income (AGI) within the limits:
- Single filers: Full payment for incomes up to $75,000, phased out at $80,000.
- Married couples filing jointly: Full payment for incomes up to $150,000, phased out at $160,000.
- Head of household: Full payment for incomes up to $112,500, phased out at $120,000.
If you meet these criteria, you don’t need to do anything—the IRS will send the payment automatically.
How Will You Receive Your Payment?
The IRS is using the direct deposit information or mailing address from your 2021 tax return to issue payments. If you have a bank account on file, you should see the money in your account first. If not, a check will be mailed to your address.
To check if you’ve received the deposit, monitor your bank account or keep an eye on your mail for an IRS check. Payments are being sent in waves, so don’t panic if yours doesn’t arrive right away.
What Should You Do If You Haven’t Filed Your 2021 Taxes?
If you never filed a 2021 tax return, you still have time to claim your money. The deadline to file and receive the Recovery Rebate Credit is April 15, 2025. If you think you were eligible but never received any stimulus payment, filing a 2021 return could get you the money you’re owed.
Final Thoughts
This unexpected IRS payment is great news for those who may have missed out on their stimulus money. If you think you qualify, check your bank account and keep an eye on your mail. The government is making sure every eligible American gets their fair share—don’t miss out!
