The Covid-19 pandemic caused Americans to face a health and economic challenge, and in this situation the government launched stimulus checks, one of which was the Economic Impact Payment (EIP), which was paid in three rounds and the funds were distributed by the Internal Revenue Service (IRS) and the U.S. Department of the Treasury.
The IRS reported a few days ago that when reviewing internal data it detected that many taxpayers in their 2021 tax returns did not claim the Recovery Rebate Credit that was part of the EIP, so it plans to issue automatic payments of up to $1,500 to about one million eligible people.
The Recovery Rebate Credit is a refundable credit for people who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments.
Eligible taxpayers have already been detected in the IRS system and do not have to do anything to claim the refund, which is scheduled to be distributed by direct deposit in late December to the bank account listed on the 2023 return. However, if your form of refund is by check, the document will arrive at the address that the IRS has on record in late January 2025.
“In an effort to minimize burden and get this money into the hands of the people who are owed it, we are issuing these payments automatically, meaning people will not have to go through the extensive process of filing an amended return to receive it,” said IRS Commissioner Danny Werfel.
Most taxpayers have already received Recovery Refunds
The IRS reported that almost all eligible taxpayers have already received the federal stimulus payments, but there are those who still do not have it and it was detected that they filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or completed it as $0 when they were actually eligible for the credit.
These payments for the 2021 Refund Recovery Credit will only go to taxpayers whose IRS data shows that a taxpayer qualifies for the credit.
In addition, the IRS will notify each eligible taxpayer by sending letters, and the eligibility criteria and how to calculate the maximum amount of $1,500 is published online.
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