The IRS has announced that it will soon begin sending automatic payments to eligible taxpayers who missed out on claiming the Recovery Rebate Credit in 2021. This is a big deal for anyone who didn’t get the full amount of their Economic Impact Payments (also known as stimulus checks) in 2021. The goal is to help people who were supposed to receive these payments but missed them due to a mistake or omission in their tax returns.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was designed to help individuals who didn’t receive one or more stimulus checks in 2020 and 2021. The IRS is now reaching out to those who didn’t claim this credit on their 2021 tax returns. It’s not something you need to apply for—if you’re eligible, the IRS will automatically send the payment.
How Much Can You Expect?
If you missed claiming the credit, the IRS will send you up to $1,400, depending on your eligibility. The total amount of stimulus payments expected to be sent out is about $2.4 billion. This is a huge boost for those who missed the first round of stimulus checks. No need for you to file an amended return or take any extra steps. The IRS is handling everything automatically.
When Will You Get the Payment?
The payments are expected to begin in December 2024, and the last of them should arrive by the end of January 2025. If you’re eligible, you will either receive the payment through direct deposit to your bank account or via a paper check in the mail. The payment will go to the bank account or address listed on your most recent tax return (2023).
Who Qualifies for These Payments?
If you filed a 2021 tax return but didn’t claim the Recovery Rebate Credit or marked it as $0, you are eligible for this automatic payment. This is true even for people with no or very little income. In case you haven’t yet filed your 2021 taxes, you can still qualify, but you need to submit your tax return by April 15, 2025. Don’t miss out on this opportunity!
What If Your Bank Account Was Closed?
If your bank account has been closed since filing your 2023 tax return, don’t worry. The IRS will send the payment as a paper check to the address they have on file. So, make sure your address is up to date to avoid any delays.
Why Is This Happening Now?
According to IRS Commissioner Danny Werfel, the IRS is committed to helping taxpayers by identifying those who missed out on important credits. He added that nearly a million taxpayers didn’t claim their Recovery Rebate Credit, which is why the IRS is automating this process. The aim is to simplify things and get the money into people’s hands without them having to take extra steps.
Final Thoughts
If you didn’t receive the full amount of your stimulus payments in 2021, this is a great chance to get the money you were owed. The IRS is making it easier for eligible individuals to receive their credit automatically. Remember to file your 2021 tax return by the April deadline if you haven’t already done so. The IRS will be sending payments starting in December 2024, with the last payments expected to go out by January 2025.
