Approximately one million taxpayers are set to receive unexpected payments of up to $1,400 from the IRS. The payments, either deposited directly into bank accounts or sent via paper checks, are part of a new effort by the IRS to ensure eligible individuals get the money they may have missed out on during the pandemic.
This initiative involves distributing $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. If you missed out on one of the stimulus payments during the COVID-19 pandemic or didn’t receive the full amount you were entitled to, you may be eligible for this extra cash.
Who Qualifies for the Payments?
Unfortunately, not everyone will qualify. The IRS explained that most eligible taxpayers have already received their Economic Impact Payments (EIPs), commonly referred to as federal stimulus checks.
The current round of payments will only go to taxpayers who:
- Filed a 2021 tax return.
- Left the Recovery Rebate Credit field blank or entered “$0” even though they were eligible.
If you meet these criteria, you’re in luck! There’s no need to take any additional action; the money will come to you automatically.
When Will Payments Arrive?
The IRS will begin distributing payments this month, and recipients can expect to see the funds in their accounts or receive their checks by late January 2025.
If you’re eligible, here’s how the payment will be sent:
- Direct Deposit: Payments will go to the bank account you provided on your 2023 tax return.
- Paper Checks: If you didn’t provide bank details, the IRS will mail a check to the address they have on file.
Each eligible individual could receive up to $1,400. The IRS has also posted additional information online explaining how the payment amount was calculated.
What If I Haven’t Filed My 2021 Tax Return?
If you haven’t filed your 2021 tax return yet, there’s still time to claim this money. However, you must act quickly! Taxpayers have until April 15, 2025, to file their return and claim the Recovery Rebate Credit.
Even if you had little or no income in 2021, filing a return is essential to qualify for this payment. This includes individuals without traditional income sources such as a job or business.
A Quick Recap of COVID Stimulus Payments
Since the start of the COVID-19 pandemic, the U.S. government has issued three rounds of stimulus payments to help households impacted by economic disruptions. The payments were based on a taxpayer’s income, filing status, and number of dependents. Here’s a brief overview:
- March 2020 (CARES Act)
- Up to $1,200 per income tax filer.
- Additional $500 per child.
- December 2020 (Consolidated Appropriations Act)
- Up to $600 per income tax filer.
- Additional $600 per child.
- March 2021 (American Rescue Plan Act)
- Up to $1,400 per income tax filer.
- Additional $1,400 per child.
Despite these efforts, some individuals missed out on their full payments, which is why this latest IRS initiative is so important.
What Happens Next?
Eligible taxpayers will receive a notification letter from the IRS detailing the payment amount and how it was determined. This letter will also explain any steps taxpayers need to take if there are issues with the payment.
If you believe you’re eligible but don’t receive a payment or notification, check the IRS website for further guidance or contact their support services.
Final Thoughts
This new round of payments serves as a reminder of the importance of filing your tax returns, even if your income is minimal. The Recovery Rebate Credit is just one example of how overlooked opportunities can translate into missed financial benefits.
If you think you’re eligible, keep an eye on your mailbox or bank account in the coming weeks. And if you haven’t filed your 2021 return yet, don’t delay—the deadline to claim your credit is just over a year away.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.