Millions of Americans are in for a financial surprise as the IRS begins distributing unexpected payments of up to $1,400. These payments are being sent to individuals who missed out on the 2021 Recovery Rebate Credit (RRC), a stimulus benefit many taxpayers accidentally overlooked.
The IRS recently reviewed its records and discovered that about one million people never claimed their full stimulus payment when they filed their 2021 tax returns. Instead of requiring taxpayers to go through a lengthy amendment process, the agency is automatically sending out the money.
Why Is the IRS Sending These Payments?
The payments come from the American Rescue Plan Act, which provided a third round of stimulus checks in 2021. If someone didn’t receive the full amount of up to $1,400 per person, they were supposed to claim the difference on their 2021 tax return.
However, many eligible taxpayers either left the credit field blank or mistakenly reported that they weren’t owed anything. The IRS caught the mistake and is now fixing it by issuing payments automatically.
Who Will Get the Money and When?
The IRS started sending out the payments in December 2024, and most recipients should have their money by the end of January 2025.
Here’s how the payments are being distributed:
- If you filed taxes with direct deposit, the money will show up in your bank account.
- If you filed by mail, you’ll receive a paper check.
- The IRS is also mailing letters to notify eligible taxpayers of their payment.
The exact amount varies, but the maximum is $1,400 per person. If you’re eligible but haven’t received anything yet, check your tax return to see if you mistakenly left out the Recovery Rebate Credit.
What If You Didn’t File Taxes?
If you didn’t file a 2021 tax return, you still have time to claim the money. The IRS has set a deadline of April 15, 2025, for taxpayers to submit their returns and receive their stimulus credit.
Even if you had little or no income in 2021, you may still be eligible, but you must file a return to receive the payment. The fastest way to do this is by filing electronically and selecting direct deposit.
Beware of Scams
Whenever money is involved, scammers take advantage. The IRS warns taxpayers that it never contacts people via email, text messages, or social media to ask for personal or financial information. If you receive a suspicious message claiming to be from the IRS, ignore it and report it.
Final Thoughts
If you think you’re eligible for this payment but haven’t received it, check your 2021 tax return and make sure you didn’t overlook the Recovery Rebate Credit. If you never filed, there’s still time to submit your return and claim your money.
For the latest updates, visit the official IRS website and avoid misinformation online.
