Over one million Americans are in for a financial boost as the IRS announced plans to issue $1,400 stimulus payments in early 2025. The payments will be automatically sent to those who missed out on claiming the Recovery Rebate Credit (RRC) on their 2021 tax returns, an issue that left many eligible taxpayers without the COVID relief they were entitled to.
During the pandemic, millions of Americans received Economic Impact Payments, commonly known as stimulus checks. But not everyone received the full amount they were eligible for, often due to errors or omissions when filing their taxes. The IRS has identified these cases and will now automatically send refunds without requiring any further action from the taxpayers.
Who Qualifies for This Payment?
The $1,400 payment is part of the Recovery Rebate Credit program, which provided refunds for those who didn’t receive all their stimulus payments. Individuals who left this section blank or entered incorrect information when filing their 2021 taxes will be receiving the payments automatically.
The IRS estimates that about $2.4 billion will be distributed through this initiative. Payments will be directly deposited into bank accounts or sent by paper check, depending on how recipients received previous refunds. Most payments are expected to arrive by the end of January 2025.
IRS Officials Speak Out
Danny Werfel, the IRS Commissioner, reassured taxpayers that the goal of this initiative is to correct oversights and ensure everyone receives what they’re owed. “We understand how easy it is for things to slip through the cracks when navigating tax credits and relief programs. We’re taking action to make sure people don’t miss out,” Werfel said.
What About People Who Haven’t Filed Yet?
If you haven’t filed your 2021 tax return, it’s not too late. The IRS urges anyone who hasn’t filed to do so as soon as possible. Even those with little or no income may qualify for the credit, and filing is necessary to claim it. The deadline to submit your 2021 return and potentially receive the credit is April 15, 2025.
What Should You Do Next?
For most eligible taxpayers, nothing needs to be done—payments will arrive automatically. However, if you believe you’re eligible but don’t see the payment by February, you can contact the IRS or check your status through their online tools.
This latest move by the IRS highlights its ongoing effort to ensure that Americans receive the full benefits they were promised during the pandemic. For many, this refund could provide much-needed relief in the new year.
