IRS Announces $1,400 Payouts for Taxpayers—Are You Getting One?
In a move to address missed stimulus payments from the COVID-19 pandemic, the IRS has begun issuing automatic payments of up to $1,400 to around one million eligible taxpayers. These payments, which started rolling out in December 2024, are expected to continue through late January 2025. If you didn’t claim the Recovery Rebate Credit (RRC) on your 2021 tax return, this might be for you.
Who Qualifies?
The IRS identified taxpayers who filed a 2021 tax return but either left the Recovery Rebate Credit section blank or incorrectly entered $0, even though they qualified for the payment. If this sounds like you, you’re likely on the list to receive these funds. This initiative ensures that individuals who missed out on earlier Economic Impact Payments (EIPs) can still get their rightful share.
Payment Details
The maximum payment is $1,400 per individual, with a total of $2.4 billion being distributed. The IRS is either directly depositing the funds into the bank accounts listed on recipients’ 2023 tax returns or sending paper checks to their mailing addresses. If you’re eligible, there’s nothing you need to do—payments are automatic. To keep recipients informed, the IRS is also sending letters explaining the payment details.
Haven’t Filed Yet? Here’s What You Need to Know
For those who haven’t filed their 2021 tax return but believe they qualify for the Recovery Rebate Credit, there’s still time. The deadline to submit your return and claim any eligible payments is April 15, 2025. Don’t miss this opportunity to secure your payment.
How to Prepare
If you’re expecting a payment, monitor your bank account or mail over the coming weeks. Be sure to look out for the official IRS notification letter confirming the payment.
While this isn’t a new stimulus initiative, it’s a critical step by the IRS to correct past oversights and ensure that eligible taxpayers receive the financial relief they deserve. Stay informed, and if you believe you’re eligible, take action to claim what’s rightfully yours.
