The IRS is rolling out significant payments to about one million taxpayers who missed out on critical financial support during the pandemic. These surprise checks, worth up to $1,400, aim to correct errors in claiming the Recovery Rebate Credit (RRC) for 2021. Here’s everything you need to know.
What Is This Payment About?
During the pandemic, the government distributed three stimulus checks under the Economic Impact Payments (EIPs). However, many eligible individuals didn’t receive their full payments, often because they didn’t claim the RRC on their 2021 tax returns. The IRS has identified these cases and is now issuing payments automatically.
Who Gets the Money?
To qualify, you must have:
- Filed a 2021 tax return.
- Either left the Recovery Rebate Credit section blank or mistakenly entered $0.
The maximum payment is $1,400 per person, including an additional $1,400 for each eligible dependent. Payments are being deposited into bank accounts or mailed as paper checks. Most recipients will receive their funds by late January 2025.
What If You Didn’t File?
You still have time if you haven’t filed your 2021 tax return yet. The deadline to submit your return and claim the RRC is April 15, 2025. Filing can ensure you get this credit even if you earned little or no income.
Why This Matters
The payments represent a broader effort by the IRS to ensure eligible Americans receive their pandemic-related financial support. This latest round could inject over $2.4 billion into households nationwide.
What To Do Next
- Watch for a letter from the IRS detailing your payment.
- Ensure your mailing address and bank information are updated with the IRS to avoid delays.
This unexpected boost could be a game-changer for many households still recovering financially from the pandemic. Don’t miss out—check your eligibility and file your taxes if needed!
