Millions of Americans who missed out on previous stimulus payments are in for a pleasant surprise. The IRS has announced that over one million people will soon receive $1,400 payments as part of a Recovery Rebate Credit correction. This new effort aims to help those who mistakenly missed out on Economic Impact Payments (EIPs) distributed during the COVID-19 pandemic.
So, if you’re wondering whether you’re eligible or what steps to take, here’s what you need to know.
Why Is the IRS Sending These Payments Now?
During the pandemic, the U.S. government issued several rounds of stimulus payments to help Americans facing financial difficulties. However, some eligible taxpayers either didn’t receive their payments or didn’t claim them on their 2021 tax returns. To fix this, the IRS is now issuing automatic payments to those who qualify without requiring any additional paperwork.
This move comes after the IRS reviewed tax returns and discovered many people left the Recovery Rebate Credit section empty or incorrectly marked as $0.
Do You Qualify for the $1,400 Payment?
The good news is that many of these payments are automatic, so you don’t need to worry about filing an amended tax return. To qualify, you must have filed a 2021 tax return but failed to claim the Recovery Rebate Credit despite being eligible.
The maximum amount you can receive is $1,400 per person, and if you meet the criteria, you should receive your payment by late January 2025. Payments will either be directly deposited into your bank account or sent via check through the mail. Keep an eye out for a letter from the IRS explaining the details of your payment.
What If You Didn’t File a 2021 Tax Return?
If you haven’t filed a 2021 tax return, it’s not too late to claim the Recovery Rebate Credit. The IRS is urging non-filers, even those with little or no income, to submit their 2021 tax returns before the April 15, 2025, deadline. This could potentially unlock not only the $1,400 payment but other credits or refunds you may be entitled to.
Key Takeaways
- If you filed a 2021 tax return and didn’t claim the Recovery Rebate Credit, the IRS will automatically send you a payment of up to $1,400.
- No additional steps are needed if you meet the criteria. The IRS will contact you with further details about the payment.
- Non-filers still have a chance to claim their money by submitting a 2021 tax return by April 15, 2025.
This initiative is part of the IRS’s ongoing efforts to ensure that no one misses out on the financial relief they deserve. If you’ve been financially stretched or missed your previous stimulus payment, this could be the boost you’ve been waiting for. Be sure to check your bank account or mailbox soon!
