The IRS is preparing to issue payments of up to $1,400 to nearly one million taxpayers who missed out on the 2021 Recovery Rebate Credit. This initiative is part of an effort to ensure eligible individuals receive the funds they were entitled to during the pandemic but may have overlooked due to filing errors or missing tax returns.
Who Is Eligible for the $1,400 Payment?
These payments target individuals who:
- Filed a 2021 tax return but did not claim the Recovery Rebate Credit.
- Meet income requirements based on their 2021 adjusted gross income (AGI):
- Single filers: AGI under $80,000.
- Heads of household: AGI under $120,000.
- Married couples filing jointly: AGI under $160,000.
In addition to individual payments, eligible dependents can also qualify for an extra $1,400 each.
When Will Payments Be Issued?
Payments are expected to be distributed by the end of January 2025. Those eligible will receive the funds either through direct deposit or via paper check, depending on their tax filing preferences.
What If You Haven’t Filed a 2021 Tax Return?
For individuals who did not file a 2021 tax return, it’s not too late. The IRS is encouraging taxpayers to file their returns by the deadline of April 15, 2025, to claim the Recovery Rebate Credit. This includes individuals who had minimal or no income and were not required to file but could still qualify for the payments.
How to Ensure You Get Paid
- Check Your Mail: The IRS will send out letters to inform eligible individuals about the upcoming payment.
- Verify Your Bank Details: Make sure your bank account information is up to date to avoid delays in receiving your payment.
- File Any Missing Tax Returns: If you haven’t filed your 2021 tax return, submit it as soon as possible to claim your credit.
Why Is This Happening?
This initiative follows an IRS review that found millions of Americans had missed out on their Recovery Rebate Credit. To address this, the IRS is issuing these payments automatically to those who are eligible. This means that for many taxpayers, there’s no need to take further action.
These $1,400 payments could make a big difference for households still feeling the financial impacts of the pandemic. If you believe you’re eligible, take steps now to ensure you don’t miss out on this opportunity.
