The Internal Revenue Service (IRS) is set to send out $1,400 stimulus checks to eligible taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This initiative aims to distribute approximately $2.4 billion to around one million taxpayers by the end of January 2025.
Key Takeaways
- Eligible taxpayers will receive up to $1,400 automatically.
- Payments are being sent via direct deposit or paper checks.
- No action is required from recipients to claim the funds.
- Taxpayers who did not file a 2021 return can still claim the credit by April 15, 2025.
Who Is Eligible?
The IRS has identified that many taxpayers did not claim the Recovery Rebate Credit, which was designed for individuals who missed out on one or more Economic Impact Payments during the COVID-19 pandemic. To qualify for the upcoming stimulus check, taxpayers must have:
- Filed a 2021 tax return.
- Left the Recovery Rebate Credit field blank or marked it as $0.
How Much Will You Receive?
Eligible individuals can expect to receive a maximum of $1,400. The total amount being distributed nationwide is estimated at $2.4 billion, benefiting approximately one million taxpayers.
How Will Payments Be Distributed?
Payments will be sent automatically, with no action required from eligible taxpayers. The IRS will disburse funds through:
- Direct Deposit: Payments will be deposited into the bank account listed on the taxpayer’s 2023 return.
- Paper Checks: For those without direct deposit information, checks will be mailed to the address on record.
What If You Didn’t File a 2021 Tax Return?
Taxpayers who did not file a 2021 return can still claim the Recovery Rebate Credit. They must file their 2021 tax return by April 15, 2025, to be eligible for the stimulus payment. This includes individuals with minimal or no income.
Why Is the IRS Issuing These Payments Now?
The IRS’s decision to issue these payments stems from a review of internal data, which revealed that many eligible taxpayers overlooked the Recovery Rebate Credit. IRS Commissioner Danny Werfel emphasized the agency’s commitment to ensuring that eligible taxpayers receive the funds they are entitled to without the need for complex filing processes.
Conclusion
The IRS’s initiative to automatically distribute $1,400 stimulus checks is a significant step in providing financial relief to those who missed out on previous payments. Eligible taxpayers should keep an eye on their bank accounts and mailboxes for notifications regarding their payments. This effort underscores the IRS’s dedication to supporting taxpayers and addressing the complexities of tax credits effectively.
Sources
- IRS stimulus checks: See eligible taxpayers, amounts for January 2025, Austin American-Statesman.
- IRS is sending out $1,400 stimulus checks: What to know in Mississippi, The Clarion-Ledger.
- IRS is sending out $1,400 stimulus checks: What to know in Arizona, The Arizona Republic.
- IRS sending stimulus checks for unclaimed recovery rebate credit, Detroit Free Press.
- Millions of Taxpayers Eligible for $1,400 Stimulus Checks – Are You One?, T.H.E – Music Essentials.
