Eligible individuals who failed to claim the Recovery Rebate Credit on their 2021 tax returns will receive automatic payouts in late January, according to the Internal Revenue Service (IRS). This is a component of continuous efforts to assist taxpayers.
After reviewing its own data, which revealed that many eligible taxpayers submitted a return but did not claim the credit, the IRS decided to take this exceptional action.
The Recovery Rebate Credit is a reimbursement available to those who did not receive any Economic Impact Payments (EIP), commonly referred to as stimulus payments.
In most circumstances, these payments should arrive by the end of January 2025 after being automatically paid in December. To obtain them, eligible taxpayers need not take any action.
How will you receive your stimulus payments?
Payments will be sent automatically by paper check or deposited immediately. Eligible taxpayers will also get a supplementary letter informing them of the payout.
According to IRS Commissioner Danny Werfel, the agency continues to put up a lot of effort to assist taxpayers and improve the situation. These payments demonstrate our commitment to go above and above for taxpayers. Analyzing our own data, we discovered that one million taxpayers were entitled for this complex credit but failed to claim it.
We are automating these payments to streamline the process and ensure that eligible taxpayers receive this money as soon as possible. In this manner, he said, these individuals will be able to obtain it without having to undergo the laborious process of filing an updated return.
The maximum amount that any person can receive is $1,400, though this varies depending on several criteria. It is estimated that approximately $2.4 billion will have to be paid.
Additionally, the IRS reminded those who have yet to file their 2021 tax forms that they may potentially qualify. They have until April 15, 2025, though, to submit their returns and get the credit and any additional reimbursements they might be entitled to.
By the end of January 2025, those who are eligible but did not claim any of the credit on their 2021 tax return should receive this money.
The funds will be transferred to the address or bank account listed on the taxpayer’s 2023 tax return.
The IRS will send a letter to the recipient of these 2021 Recovery Rebate Credit payments. If a person has closed their bank account since filing their 2023 taxes, they are not required to take any action.
The refund will be issued to the provided address after the bank returns the funds to the IRS.
If they file a return, those who did not file a 2021 tax return may be eligible for the credit.
See Also: Information Social Security does not want you to know Be mindful of your upcoming payments.
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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.