The Internal Revenue Service (IRS) is stepping up to ensure that eligible Americans receive the financial support they were entitled to during the pandemic.
On Friday, the agency announced that it is distributing a total of $2.4 billion in “special payments” to about 1 million people. These payments are aimed at individuals who missed out on the full amount of their federal stimulus checks and could be as high as $1,400 per recipient.
Here’s what you need to know about the IRS payments, including who qualifies, when the money will be sent, and how it will arrive.
Why Is the IRS Sending These Payments?
During the COVID-19 pandemic, Congress approved three rounds of stimulus payments to help Americans weather the financial strain. However, some eligible taxpayers either didn’t receive their payments or only got a partial amount.
To address this, the IRS offered a solution called the “recovery rebate credit” that allowed taxpayers to claim the missing stimulus funds when filing their taxes.
Despite these efforts, the IRS identified a gap—many people who filed tax returns in 2021 failed to claim the recovery rebate credit. After reviewing its internal records, the agency decided to step in and send the money automatically to those who qualify.
Who Will Receive the Payments?
According to the IRS, the payments will go to individuals who meet specific criteria:
- Filed a Tax Return: The recipient must have filed a federal tax return for 2021.
- Eligible for the Recovery Rebate Credit: The individual was entitled to additional stimulus money but didn’t claim it when filing their taxes.
The IRS has reassured taxpayers that most people who were eligible for the stimulus checks have already received them either directly or by claiming the recovery rebate credit. However, this new initiative aims to close any remaining gaps.
Do You Need to Apply for This Payment?
No action is required from eligible taxpayers. The IRS Commissioner, Danny Werfel, emphasized that the payments will be made automatically. This decision spares recipients from the hassle of filing an amended tax return or navigating a lengthy claims process.
Additionally, the IRS will send letters to all recipients to notify them about the upcoming payment, explaining the eligibility and payment method.
How and When Will the Payments Be Sent?
The IRS has stated that the checks will be issued starting in December 2024, with the majority of payments expected to reach recipients by late January 2025.
Here’s how the payments will be delivered:
- Direct Deposit: If the IRS has your banking information on file, the payment will be deposited directly into your account.
- Paper Check: For others, the funds will arrive via a paper check mailed to the address listed on their tax return.
What Should You Do If You Think You Qualify?
If you believe you’re eligible but haven’t heard from the IRS, keep an eye on your mail and bank account starting in December. While the IRS will notify all recipients, you can double-check your eligibility by reviewing your 2021 tax return to see if you missed claiming the recovery rebate credit.
If you suspect an error or have questions, visit the IRS website or consult a tax professional for guidance.
Conclusion
The IRS’s effort to send out these payments is a significant step in ensuring that no eligible American is left behind in receiving their pandemic-era stimulus funds. For the 1 million individuals awaiting this financial boost, the payments could offer much-needed relief.
As the checks roll out in the coming months, taxpayers can rest assured knowing the IRS is working to make the process seamless and hassle-free.
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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.