A check from the Internal Revenue Service is likely to brighten the holiday season for one million taxpayers throughout the country.
The IRS stated on Friday that around $2.4 billion in stimulus funds will be sent to some taxpayers in the coming weeks.
Internal data reviewed by the IRS revealed that many consumers who filed a tax return in 2021 did not claim the Recovery Rebate Credit, causing the revenue office to make the batch of “special” automated payouts.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were eligible,” IRS Commissioner Danney Werfel said in a statement. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
By late January, all qualified taxpayers will have received reimbursements, which will be automatically paid straight into their accounts or mailed to them in the form of paper checks. Eligible receivers do not need to take any action to get the chunk of change.
Recovery Rebate Credit: Overview
The Recovery Rebate Credit is a “refundable credit for individuals who did not receive one or more Economic Impact Payments, also known as stimulus payments,” according to the IRS. Only individuals who did not claim the RRC for the 2021 tax year or have yet to file for 2021 are eligible.
The IRS released three waves of stimulus payments during the COVID-19 epidemic, so most, if not all, eligible people have already received them and will be ineligible to claim the RRC.
According to IRS data from 2022, over 393,000 Pennsylvanians applied for the recovery rebate credit in 2021.
However, the IRS has not determined how many Pennsylvanians are likely to collect their unclaimed credit this year, according to a spokeswoman on January 2.
$1,400 Stimulus Payments Eligibility
The majority of taxpayers who were qualified for stimulus funds or the Recovery Rebate Credit have already received them. Those who submitted a tax return in 2021, as well as those who have yet to file, may be eligible.
“Special” payments will only be made to taxpayers who qualify for the credit. The IRS defines “qualified taxpayers” as individuals who filed a 2021 tax return but left the Recovery Rebate Credit data field blank or filled in $0 despite being eligible for the credit.
Taxpayers who have not yet filed their 2021 taxes may be eligible for a refund if they file and claim the Recovery Rebate Credit before April 15, 2025, regardless of whether their income from a job, business, or other source was small or nonexistent.
Although it is uncertain how many Bucks County residents will receive the special payment, the county treasurer asked citizens to keep track of any money owed to them, including stimulus cheques. “Whenever there’s an opportunity to backtrack and double-check that you have collected what you are owed, it’s always a good idea,” Kristian Ballerini told me.
Stimulus Check Amount
The amount given for a payment depends on numerous conditions, but the maximum payment is $1,400 per individual. Visit the IRS website if you need more information or have questions about how the payment was calculated or eligibility was determined.
The payment will be made to the bank account stated on the taxpayer’s 2023 tax return or the address of record, according to the IRS.
