In the upcoming weeks, around 1 million taxpayers are set to receive automatic special payments from the IRS, with amounts reaching as high as $1,400. Eligible individuals will receive the funds either through direct deposit into their bank accounts or via a paper check sent through the mail.
The IRS announced it will be distributing approximately $2.4 billion to taxpayers who did not claim a Recovery Rebate Credit on their 2021 tax returns. Individuals who did not receive a complete COVID stimulus payment or missed one altogether had the opportunity to claim the credit. However, the IRS announced on Friday that it found a significant number of eligible taxpayers had not taken action.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.
Discover the details surrounding the surprising funds that this group of taxpayers is set to receive shortly:
What are the chances that I will get a check?
Apologies, but it seems quite minimal. The IRS announced that the majority of taxpayers qualified for the federal stimulus payments have already received their funds.
Must Read: $500 Monthly Stimulus Checks in 2024: Which States Are Sending Payments?
The IRS has announced that special payments are being distributed to taxpayers who submitted a 2021 tax return but either left the Recovery Rebate Credit field empty or indicated $0, despite being eligible for the credit.
What is the process behind this?
Taxpayers who qualify are not required to do anything. This month, payments will be processed automatically and are expected to reach recipients via direct deposit or check by the end of January 2025. Payments will be directed to the bank account specified on the taxpayer’s 2023 return or to the address that the IRS has on record.
The maximum payment per individual will be $1,400, though amounts may differ. Details regarding eligibility and the calculation of the payment have been made available by the IRS on their website.
The IRS is set to issue individual letters to qualifying taxpayers to inform them about the special payment.
Also Read: $800 Stimulus Checks in 2024: Payment Timeline and Qualification Rules
What should I do if my 2021 tax return is still unfiled?
There could still be a chance for you to obtain the funds. Taxpayers must ensure they file a tax return and claim the Recovery Rebate Credit by the deadline of April 15, 2025, regardless of whether their income from employment, business, or other sources was minimal or nonexistent, as stated by the IRS.
What is the total number of rounds for COVID relief payments?
Payments to households affected by the pandemic reached a staggering total of $814 billion across three rounds. The amounts received by taxpayers were determined by the IRS based on their income, tax filing status, and the number of children or qualifying dependents.
Conclusion
In March 2020, qualifying individuals were granted up to $1,200 for each income tax filer and $500 for each child under the provisions of the CARES Act. In December 2020, qualifying individuals were granted up to $600 for each income tax filer and an additional $600 for every child under the Consolidated Appropriations Act. In March 2021, qualifying individuals were granted as much as $1,400 for each income tax filer and an additional $1,400 for every child under the provisions of the American Rescue Plan Act.
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