- These payments are intended for those who were eligible for the Recovery Rebate Credit in 2021 but did not claim it.
- Eligible taxpayers do not need to take any action to receive the payment.
- The payments will be distributed by late January through direct deposit or paper check.
A check from the Internal Revenue Service is set to make the end of the holiday season a little greener for one million taxpayers.
About $2.4 billion worth of stimulus checks will be distributed among some taxpayers in the coming weeks, the IRS announced Friday.
Internal data reviewed by the IRS found that many people who filed a tax return in 2021 failed to claim the Recovery Rebate Credit, prompting the revenue service to issue the batch of “special” automatic payments.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danney Werfel said in a statement. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
All eligible taxpayers will receive payments by late January that will either be automatically deposited directly into their account or sent by paper check in the mail. No action from eligible recipients is needed to receive the chunk of change.
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What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a “refundable credit for individuals who did not receive one or more Economic Impact Payments also known as stimulus payments,” said the IRS. Only those who failed to claim the RRC for the 2021 tax year or have not yet filed for 2021 are eligible.
The IRS previously issued three rounds of stimulus payments throughout the COVID-19 pandemic, which means most if not all eligible people have already received stimulus payments and won’t be eligible to claim the RRC.
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Who is eligible to get the stimulus payments?
Most taxpayers eligible for stimulus checks have received those payments or the Recovery Rebate Credit. However, those who filed a tax return in 2021 and even those who have not yet filed for 2021 may be eligible.
“Special” payments will only be sent to qualified taxpayers who qualify for the credit. The IRS has defined “qualified taxpayers” as those who filed a 2021 tax return but left the data field for the Recovery Rebate Credit or filled out $0 when the individual was eligible to receive the credit.
Taxpayers who have not yet filed taxes for 2021 may receive a refund if they file and claim the Recovery Rebate Credit by April 15, 2025, even if the income earned from a job, business, or other source was minimal or nonexistent.
How much money will I receive?
The amount issued for a payment will vary on several factors, but the maximum payment is up to $1,400 per person. For additional information or questions about how the payment was calculated or how payment eligibility was determined, visit the IRS website.
The payment will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address of record, according to the IRS.
Are you one of the million taxpayers set to receive a stimulus payment from the IRS? Find out if you qualify and how to ensure you receive your payment in our latest post.
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