Millions of Americans could see a boost in their bank accounts this month, as the IRS is sending out automatic payments of up to $1,400. These payments are part of the Recovery Rebate Credit (RRC) program designed to ensure taxpayers who missed previous stimulus checks still get the financial support they’re entitled to. Here’s what you need to know about qualifying and when to expect your money.
Why Is the IRS Sending Out These Payments?
The IRS announced that around one million people are set to receive direct payments because they either didn’t claim the Recovery Rebate Credit on their 2021 tax returns or missed out on one or more stimulus checks during the COVID-19 pandemic.
This initiative is part of the government’s effort to ensure that eligible taxpayers don’t lose out on the financial aid they qualify for. Many of these individuals may have missed the stimulus payments due to filing errors or because they simply didn’t file their taxes on time.
Who Is Eligible for the $1,400 Direct Deposit?
You could qualify for this payment if:
- You filed a 2021 tax return but didn’t claim the Recovery Rebate Credit.
The IRS identified eligible taxpayers who filed their returns but failed to claim the RRC. These individuals will receive payments automatically, with no need to take further action. - You haven’t filed your 2021 tax return yet.
If you missed the deadline to file your 2021 taxes, it’s not too late. The IRS is encouraging non-filers to submit their returns by April 15, 2025. If you’re eligible, you can claim the RRC and potentially receive up to $1,400 per person.
How Much Will You Get?
The payment amount varies based on your eligibility and any previous stimulus payments you may have already received. For those who qualify, the maximum amount is $1,400 per person. Families could receive even more, depending on the number of qualifying dependents.
When and How Will the Payments Be Sent?
The IRS has confirmed that payments will be issued automatically, either through direct deposit or via paper checks, depending on the information provided in your 2021 tax return. The first wave of payments is expected to be deposited by the end of January 2025.
If you’re receiving a paper check, keep an eye on your mailbox in the coming weeks. Direct deposits, however, should show up in your account sooner.
What Should You Do Next?
- Check your bank account: If you filed your 2021 tax return but didn’t claim the RRC, you may see a deposit of up to $1,400 by the end of the month.
- File your 2021 taxes: If you haven’t filed your 2021 tax return yet, it’s not too late. Submitting it before April 15, 2025, could allow you to claim any missed credits and refunds.
- Stay updated: For the latest details, visit the IRS website or speak to a tax professional to ensure you’re taking advantage of all available credits.
With economic uncertainty still lingering for many, this payment could provide much-needed financial relief to eligible households.
