The IRS has begun sending automatic payments to about one million people who didn’t realize they were eligible for stimulus money tied to the 2021 tax year. If you’re eligible, you could be receiving up to $1,400 without having to lift a finger.
This comes after the IRS discovered that many taxpayers missed out on claiming the 2021 Recovery Rebate Credit when filing their tax returns. Instead of requiring individuals to go through a complicated process to fix this, the IRS is making it simple by sending out payments automatically.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was created during the COVID-19 pandemic to help Americans who didn’t get their full stimulus payments or missed them altogether. While millions have already claimed this money, the IRS found that around one million people accidentally left it off their 2021 tax returns.
To fix that, the IRS is now stepping in and directly sending the money to those who qualify.
Who’s Eligible for the Automatic Payments?
The payments are worth up to $1,400 per individual. If you qualify, you should receive the funds via direct deposit or a paper check, depending on how you set up your 2023 tax return. The IRS has also stated that recipients will get a letter in the mail confirming the payment.
If your bank account has changed recently, don’t worry. If the IRS can’t deposit the money directly, they will mail you a check instead.
Didn’t File a 2021 Tax Return? You Might Still Have Time
If you haven’t filed your 2021 tax return, there’s still a chance to get this money. The IRS has set a deadline of April 15, 2025, for non-filers to claim the Recovery Rebate Credit and any other refunds they’re entitled to. Even if you had little or no income in 2021, you should consider filing to see if you qualify for any additional benefits.
What Should You Do Now?
- If you’ve already filed your 2021 taxes and qualify for the credit: No action is needed. The IRS will automatically send you the payment.
- If you haven’t filed your 2021 taxes: File as soon as possible to claim the credit.
- If you’re unsure about your eligibility: Visit the IRS website or speak with a tax professional to confirm whether you qualify.
The IRS’s goal is to make sure that no eligible taxpayer misses out on money they are owed. With payments already going out, keep an eye on your bank account or mailbox — you could be in for a welcome surprise!
