In a new effort to ensure no one misses out on critical financial aid, the Internal Revenue Service (IRS) is rolling out $1,400 stimulus payments to approximately one million taxpayers. The payments, part of the Recovery Rebate Credit, are being sent automatically to those who didn’t initially claim them on their 2021 tax returns.
This distribution could be a game-changer for many households still feeling the economic impact of the pandemic.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was introduced as part of the pandemic relief measures. It allows individuals who missed out on one or more rounds of stimulus payments—also known as Economic Impact Payments (EIPs)—to receive the money they’re owed.
If you didn’t receive your full stimulus payments or skipped claiming the credit on your 2021 tax return, this program is designed to correct that and get the funds into your hands.
Why Is the IRS Sending These Payments Now?
After reviewing millions of 2021 tax returns, the IRS discovered a significant number of taxpayers who either left the Recovery Rebate Credit section blank or mistakenly entered $0. Instead of waiting for individuals to amend their tax returns, the IRS is taking the initiative to send the payments automatically.
Who Is Eligible for This Final $1,400 Stimulus Check?
- You must have filed a 2021 tax return but did not claim the Recovery Rebate Credit.
- The payment amount could be up to $1,400 per individual but varies depending on factors like income and filing status.
- No action is required if you’re already eligible. The IRS will issue the payment through direct deposit or by mailing a paper check.
When Will You Receive the Money?
The IRS has already begun sending the payments, and most eligible individuals should receive theirs by the end of January 2025. If you qualify, you’ll also get a letter detailing how much you’ve received and why.
Didn’t File Your 2021 Tax Return? There’s Still Time
If you haven’t filed your 2021 taxes yet, you can still do so and claim the Recovery Rebate Credit. The deadline to file is April 15, 2025. Even if you have little to no income and typically don’t file taxes, you should consider filing to see if you’re eligible for any stimulus funds.
IRS Commissioner’s Message to Taxpayers
IRS Commissioner Danny Werfel highlighted the importance of ensuring that all eligible taxpayers receive the support they deserve. “The IRS is committed to making sure people don’t miss out on money they’re entitled to. This is just one way we’re trying to make the process easier for taxpayers.”
What Should You Do Now?
- If you filed a 2021 tax return and didn’t claim the credit, wait for the payment—no action is needed.
- If you didn’t file your 2021 taxes, file them before the April 2025 deadline to claim any missed payments.
This move by the IRS is another step toward helping Americans recover from the financial setbacks caused by the pandemic. With $1,400 at stake, it’s worth checking your eligibility and taking action if necessary.
