IRS sends automatic stimulus payments to U.S. citizens. Who will receive them?

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About $2.4 billion is being disbursed by the US Internal Revenue Service to taxpayers who were unable to receive their COVID-19 pandemic stimulus funds. About a million people will have received up to $1,400 in special payments by the end of January.

Taxpayers who did not claim a refund recovery credit on their 2021 tax returns will receive these reimbursements, the IRS said. This refundable credit is available to anyone who have not received one or more Economic Impact Payments (EIPs), sometimes referred to as stimulus payments.

The Internal Revenue Service (IRS) sends automatic stimulus payments to U.S. citizens

According to IRS Commissioner Danny Werfel, They discovered that one million taxpayers were eligible for this challenging credit but chose not to apply for it after looking through their internal data. One taxpayer who benefited was Ginny Bultman, 61, of Colorado.

In 2021, Bultman and her spouse did not receive any stimulus money. After looking up the most recent IRS payments, she found she qualified for the refund recovery credit. Her salary came in the mail a day later.

It was a welcome surprise, said Bultman, who owns a locksmith business in the area. In late December, the Bultmans got three late stimulus payments totaling $4,200, one of which was for their small child. The following information regarding IRS payments should be known to you:

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  Who is qualified to get a check?
  
  Those taxpayers who submitted a 2021 tax return but either entered in the Refund Recovery Credit data box as $0 or left it blank, even though they qualified for it, will get the special payouts that the IRS announced.
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  What is the amount that qualified taxpayers will get?
  
  Although payments will differ, each person may receive up to $1,400. Approximately $2.4 billion will be disbursed by the IRS to taxpayers who failed to claim a refund recovery credit on their 2021 tax returns. The IRS has posted information online about eligibility and how the payment is calculated.
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  Why are stimulus payments being sent out by the IRS?
  
  For those who did not get economic impact payments in 2020 and 2021, there is a refundable credit known as the Refund Recovery Credit. After analyzing its data and discovering that many qualified taxpayers who filed a 2021 tax return failed to claim the credit, the IRS initiated this program.

To minimize disruption and guarantee that eligible taxpayers receive the money, it is important to stress that we are automating these stimulus payments. “This means they won’t have to go through the lengthy process of filing an updated return to get it,” Werfel said.

If you qualify for a stimulus payment, how will you receive it?

You don’t need to do anything if you qualify for the return recovery credit. IRS letters alerting eligible taxpayers to the special payment will be sent to them. This month, stimulus funds will be automatically disbursed, and by the end of January, they should come by check or direct transfer. They will be delivered to the IRS-filed address or the bank account indicated in the taxpayer’s 2023 tax return.

What happens if I haven t yet submitted my tax return for 2021?

You could still receive the money. According to the IRS, a taxpayer must submit a tax return and claim the refund recovery credit before April 15, 2025, even if their income from a job, business, or other source is small or nonexistent.

What was the number of rounds of COVID-19 stimulus payments?

In three waves, $814 billion was disbursed to households impacted by the pandemic. Based on the taxpayer’s income, tax filing status, and the number of eligible dependents or children, the IRS developed them.

The Coronavirus Assistance, Relief, and Economic Security (CARES) Act, which went into effect in March 2020, gave qualified persons up to $1,200 per income tax filer and $500 each child.

In December 2020, eligible persons received up to $600 each tax filer and $600 per child under the Consolidated Appropriations Act. The American Recovery Plan Act offered eligible individuals up to $1,400 per tax filer and $1,400 per kid in March 2021.

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