In a major financial relief effort, the IRS has confirmed it will distribute $1,400 direct deposit payments to about one million taxpayers by the end of January 2025. These payments, issued automatically, are intended for people who missed out on the Recovery Rebate Credit during the 2021 tax season.
What Is the Recovery Rebate Credit?
If you didn’t get all or part of the stimulus payments during the pandemic, the Recovery Rebate Credit allowed you to claim what you were owed on your 2021 tax return. However, many people either didn’t know they were eligible or incorrectly entered $0 or left the field blank when filing their taxes.
To fix this issue, the IRS is now automatically issuing payments to qualifying taxpayers—no extra paperwork required.
Who Gets the $1,400 Payments?
You could be among the recipients if you:
Filed a 2021 tax return.
Were eligible for the Recovery Rebate Credit but didn’t claim it.
Each qualifying individual can receive up to $1,400, and if you have eligible dependents, they could boost your payment. Payments will be delivered by direct deposit if the IRS has your banking details on file. Otherwise, you’ll receive a paper check by mail.
Additionally, the IRS will send a notification letter explaining the payment amount and why you received it.
No Action Required for Eligible Recipients
The best part? If you meet the criteria, you don’t have to do anything. The IRS has made this process automatic, saving you the hassle of filing additional forms or amendments.
Haven’t Filed Your 2021 Tax Return Yet? Act Now
If you didn’t file a 2021 tax return, there’s still time to claim this benefit. The IRS has extended the deadline to file until April 15, 2025. This applies even if you earned little or no income during that year. Filing will ensure you receive the Recovery Rebate Credit if eligible.
A Quick Recap of the Stimulus Payments
During the COVID-19 pandemic, the government issued three rounds of stimulus checks:
March 2020: Up to $1,200 per person under the CARES Act.
December 2020: Up to $600 per person.
March 2021: Up to $1,400 per person under the American Rescue Plan.
The goal of these payments was to support households facing financial struggles during the pandemic.
Final Thoughts: Don’t Miss Out on What’s Yours
With automatic payments rolling out and an extended deadline for non-filers, millions of Americans could finally receive the financial boost they missed. Check your records, and if you haven’t filed your 2021 taxes, it’s time to act.
Visit the IRS website or consult a tax professional if you have questions about your eligibility or how to file.
