In a move to provide relief for taxpayers, the IRS has begun sending automatic $1,400 payments to approximately 1 million individuals. This new round of payments comes as a response to taxpayers who missed out on claiming the Recovery Rebate Credit when filing their 2021 tax returns.
The Recovery Rebate Credit was introduced to ensure that those who didn’t receive or didn’t receive the full amount of Economic Impact Payments (stimulus checks) during the pandemic could still claim the funds they were eligible for. However, some people missed the chance to claim the credit, which is why the IRS is stepping in to send out the payments.
Who is Eligible?
The IRS is focusing on those taxpayers who filed their 2021 taxes but did not claim the full amount of the Recovery Rebate Credit. If you filed your return and missed filling out the appropriate section or incorrectly entered $0, you may be eligible for up to $1,400 in these automatic payments.
The IRS has identified roughly 1 million taxpayers who were affected and will send payments totaling around $2.4 billion in total. These payments will either be sent through direct deposit or in the form of paper checks, with funds expected to arrive by the end of January 2025. The IRS will also send a letter to confirm that the payment has been issued.
No Action Needed
The best part? If you’re eligible, you don’t have to do anything. The IRS will automatically send out the payments, so there’s no need to submit additional paperwork or make inquiries. This move is aimed at making sure people receive the financial assistance they’re entitled to without any added hassle.
What About Non-Filers?
If you haven’t filed your 2021 taxes yet, you still have time to claim the Recovery Rebate Credit. The deadline for filing is April 15, 2025, so if you missed the opportunity earlier, you can still file your taxes and claim the credit. Doing so could result in additional refunds or other credits, depending on your financial situation.
Final Thoughts
This action by the IRS is a welcome relief for many taxpayers who missed out on much-needed stimulus payments in the past. The government is committed to ensuring that people get all the benefits they’re eligible for, and this automatic payment process is a step in that direction. Make sure to review your 2021 tax filings, and if you haven’t filed yet, consider doing so before the April 15 deadline to maximize your benefits.
