The IRS has announced that nearly one million taxpayers will receive special payments by the end of January 2025. These payments, which could be as high as $1,400 per person, are being sent to individuals who missed out on claiming their Recovery Rebate Credit (RRC) on their 2021 tax returns.
The RRC was created as part of the government’s COVID-19 stimulus package. It allowed people who didn’t receive their stimulus checks—or didn’t get the full amount they were owed—to claim that money when filing their taxes. However, many eligible taxpayers either didn’t know about the credit or accidentally skipped claiming it, leaving money on the table.
Who’s Eligible?
These payments are going to taxpayers who:
- Filed a 2021 tax return but didn’t claim the Recovery Rebate Credit.
- Were eligible for the credit based on their 2021 income and filing information.
Each eligible individual could receive up to $1,400. For a married couple filing jointly, the amount could go up to $2,800, and families with qualifying dependents can receive even more.
How Are Payments Being Sent?
The IRS has made this process automatic, so eligible taxpayers don’t need to do anything. Payments are being sent via direct deposit to the bank accounts taxpayers provided on their 2023 tax returns. If no bank account information is on file, checks are being mailed to the address listed.
Along with the payment, recipients will receive a separate letter from the IRS confirming the amount they’ve been sent. Most payments are expected to arrive by the end of January.
Haven’t Filed Your 2021 Taxes Yet?
If you didn’t file a 2021 tax return, it’s not too late to claim the money you may still be owed. The IRS is encouraging non-filers to submit their 2021 taxes by April 15, 2025. This can also help taxpayers claim other credits they might have missed, such as the Child Tax Credit or the Earned Income Tax Credit.
What to Do Next
To find out if you’re eligible for this payment, check any correspondence from the IRS or log into your IRS account. If you think you missed out on stimulus money or the Recovery Rebate Credit, filing or amending your 2021 tax return is your best chance to get what you’re owed.
This program is part of the IRS’s ongoing efforts to ensure everyone receives the financial support they qualify for, especially as households continue to recover from the economic effects of the pandemic.
For more information, visit the IRS’s official website or consult a trusted tax professional.