The Internal Revenue Service (IRS) announced that it will issue automatic payments this month to approximately 1 million taxpayers who did not claim the 2021 Recovery Rebate Credit.
The total amount of payments is expected to be around $2.4 billion, with individual payments potentially reaching up to $1,400.
The payments, which are part of ongoing efforts to assist taxpayers, will be sent to individuals who were eligible for the Economic Impact Payments (EIPs) but did not claim them on their 2021 tax returns.
The Recovery Rebate Credit is a refundable credit for those who missed out on one or more of the stimulus payments.
These payments will be issued automatically, meaning no additional action is required from eligible taxpayers. The funds will be either direct deposited or sent as paper checks, with most payments arriving by late January 2025.
Eligible taxpayers will also receive a separate notification letter from the IRS confirming the payment.
The IRS also reminded taxpayers who haven’t yet filed their 2021 tax returns that they may still be eligible for the credit if they file by the April 15, 2025, deadline.
The payments will go to those who filed a 2021 tax return but left the Recovery Rebate Credit field blank or entered $0 when they were actually qualified.
These automatic payments aim to simplify the process for eligible taxpayers, saving them from filing an amended return. Additionally, the IRS assured that the payments would not count as income when determining eligibility for federal benefits such as SSI, SNAP, and WIC. The IRS said it continues its efforts to help taxpayers access credits and deductions, including other coronavirus tax relief measures.
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