Good news for many Social Security recipients: the IRS has officially started sending out unclaimed stimulus payments worth up to $1,400 per person. If you missed out on your previous payments, this may be your chance to finally receive that money.
This latest effort by the IRS aims to distribute approximately $2.4 billion in payments to around one million people who didn’t claim the Recovery Rebate Credit on their 2021 tax returns. Many of these individuals are older Americans who don’t typically file taxes but were still eligible for the stimulus checks.
Why Are These Payments Happening Now?
Over the course of the pandemic, the U.S. government issued three rounds of stimulus payments to help Americans stay financially stable:
- The first round, in March 2020, provided up to $1,200 per person.
- The second round, in December 2020, sent out $600 per person.
- The third round, in March 2021, delivered $1,400 per person.
However, despite the government’s efforts, many Social Security recipients and others didn’t receive their full payments. Some simply missed applying for them through the Recovery Rebate Credit, which could be claimed on 2021 tax returns.
How the New Payments Will Be Sent
The IRS has automatically identified eligible individuals who either didn’t claim the credit or mistakenly entered $0 on their tax forms. If you fall into this category, here’s what you can expect:
- Direct Deposits: Payments will be sent directly to the bank account associated with your 2023 tax filing.
- Paper Checks: If you don’t have direct deposit set up, the IRS will mail a check to your home address.
- When to Expect It: The IRS plans to complete these payments by the end of January 2025.
Do You Need to Take Action?
If you’re a Social Security recipient, you probably don’t need to do anything. The IRS is handling the process automatically. Once your payment is issued, you’ll receive a letter explaining the amount and how it was sent.
However, if you didn’t file a 2021 tax return and think you may have missed out on these funds, there’s still time to file and claim the credit. The deadline to do so is April 15, 2025. Filing electronically and opting for direct deposit is the fastest way to get your money.
What You Should Know Moving Forward
For those still waiting, here are some key tips:
- Stay Informed: Keep an eye on your mail and bank account for updates.
- Check IRS Communications: The IRS will provide further instructions if needed.
- Know Your Eligibility: Social Security recipients and those who didn’t claim their payments on time are the main groups benefiting from this initiative.
Final Thoughts
This new wave of payments could provide critical relief to those who missed out on earlier rounds. With no action required in most cases, many eligible recipients will finally get the money they deserve. For additional information, visit the IRS website or contact a tax professional.
