It’s possible that the IRS could owe you money, and you may receive a stimulus check soon, even if you didn’t get one in 2021. If you missed out on the Recovery Rebate Credit stimulus checks back then, there’s still hope for you to receive a payment.

In December, the IRS announced that they would issue automatic payments to eligible individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns. These payments are set to reach millions of people, and you could be one of them.

What is the Recovery Rebate Credit?

The Recovery Rebate Credit is a refund for individuals who missed out on one or more of the Economic Impact Payments (stimulus checks). If you filed your 2021 tax return but didn’t claim the credit, or if you mistakenly filled it out as $0 despite being eligible, the IRS might be sending you a payment soon.

According to IRS Commissioner Danny Werfel, around one million taxpayers missed out on claiming this credit. To make it easier for people to get their money, the IRS has decided to issue automatic payments, so you don’t have to go through the hassle of filing an amended return to receive the funds.

The goal is to ensure that taxpayers who are eligible but missed out on the credit in 2021 don’t miss out on the financial help they deserve.

Who is Eligible for the Recovery Rebate Credit?

The Recovery Rebate Credit applies to individuals who did not receive their full Economic Impact Payments. If you’re one of the people who were eligible for a stimulus check but didn’t receive the full amount, you could be in line for a payment now.

The IRS has announced that those who are eligible will receive automatic payments, so there’s no need for additional steps or complicated forms. As long as you meet the criteria, you could be receiving your payment soon.

How Much Money Could You Get?

The amount of money you might receive depends on your specific situation. However, the maximum payment you could receive is $1,400. The total amount of money being distributed across the country is a significant $2.4 billion.

These payments are being issued automatically, and you won’t need to take any action to get your money. The IRS has made sure that the process is as simple as possible for eligible taxpayers.

When Will the Stimulus Checks Arrive?

Since the payments are being automatically sent out, there’s nothing you need to do to receive your stimulus check. The checks began to be sent out in December and should reach eligible individuals by late January 2025.

For those who have direct deposit information on file with the IRS, the funds should appear in your bank account. If you don’t have direct deposit set up, you’ll receive your payment in the form of a paper check.

You will also receive a separate letter from the IRS informing you about the payment, so you’ll know when to expect the check.

What If You Didn’t File Your 2021 Tax Return?

Even if you didn’t file your 2021 tax return yet, you may still be able to claim the Recovery Rebate Credit and receive the stimulus payment. The IRS has set a deadline of April 15, 2025, for individuals to file their 2021 tax returns and claim the credit.

If you missed out on the Recovery Rebate Credit because you didn’t file your tax return in time, filing now can still make you eligible to receive the payment. However, the deadline is fast approaching, so it’s important to file your return before April 15, 2025, to ensure that you don’t miss out on this opportunity.

Key Takeaways:

• If you missed out on the Recovery Rebate Credit in 2021, the IRS is now issuing automatic stimulus payments.
• You could receive up to $1,400, depending on your situation.
• Payments will be sent by late January 2025, either through direct deposit or paper check.
• No action is needed on your part if you’re eligible for the automatic payment.
• If you haven’t filed your 2021 tax return yet, you can still file and claim the credit before April 15, 2025, to receive your payment.

If you think you might be eligible, keep an eye out for your payment and the letter from the IRS. This could be the financial boost you’ve been waiting for, especially if you missed out on the stimulus payments last year.