IRS to Send $2.4 Billion in Surprise Stimulus Payments—Are You Eligible?
Millions of Americans will soon receive surprise payments from the IRS as the agency addresses unclaimed stimulus funds from the COVID-19 pandemic. Around one million taxpayers are set to benefit from this initiative, with up to $1,400 per person being distributed in the coming weeks.
Why Are These Payments Being Sent?
During the pandemic, the government issued three rounds of stimulus checks, officially called Economic Impact Payments. However, some eligible individuals never received the full amount they were entitled to. To address this, the IRS allowed taxpayers to claim the Recovery Rebate Credit on their 2021 tax returns. Unfortunately, many people overlooked this credit or entered incorrect amounts on their forms.
To make things right, the IRS has identified taxpayers who missed out and is automatically issuing payments to them. This effort totals $2.4 billion and is designed to ensure financial assistance reaches everyone who qualifies.
How and When Will Payments Be Sent?
The IRS will issue the payments either through direct deposit or as paper checks, depending on the information available from the taxpayer’s most recent tax return. Most payments are expected to arrive by the end of January 2025. If you’re eligible, you don’t need to do anything these payments will be sent automatically.
The agency will also send notification letters to inform recipients about the payment and confirm eligibility.
Who Qualifies for These Payments?
The payments are targeted at taxpayers who:
- Filed a 2021 tax return but didn’t claim the Recovery Rebate Credit.
- Have an adjusted gross income (AGI) below specific thresholds:
- $80,000 for single filers.
- $120,000 for heads of household.
- $160,000 for married couples filing jointly.
Additionally, taxpayers who experienced significant life changes in 2021, such as having a child, adopting, or no longer being listed as dependents, might also qualify.
What About Non-Filers?
If you didn’t file a 2021 tax return, there’s still time to claim the Recovery Rebate Credit. The IRS has extended the deadline for non-filers to April 15, 2025, giving people plenty of time to ensure they don’t miss out on this financial assistance.
A Message from the IRS
IRS Commissioner Danny Werfel emphasized the agency’s commitment to taxpayers, stating, “We are working to make sure everyone gets the money they are entitled to. These automatic payments are part of our effort to eliminate confusion and simplify the process for taxpayers.”
What Should You Do Next?
If you’re unsure whether you’re eligible, review your 2021 tax filings or consult with a tax professional. Stay informed by visiting the IRS website for more details on stimulus payments and credits.
This initiative is another step in ensuring that all eligible Americans receive the pandemic relief they deserve. Don’t miss your chance to claim your share of the $2.4 billion being distributed!
