The IRS is sending out $1,400 stimulus checks to around 1 million taxpayers in the coming weeks. If you’re one of the eligible individuals, you will receive this payment either directly into your bank account or via a paper check mailed to you.

This new wave of payments comes as the IRS is distributing a total of $2.4 billion to taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. The credit allowed people who missed out on previous COVID stimulus payments or received less than the full amount to claim the difference.

What Is the Recovery Rebate Credit?

The Recovery Rebate Credit was introduced as part of the federal stimulus program during the COVID-19 pandemic. It was designed to ensure that people who were eligible for stimulus payments, but didn’t receive the full amount, could claim the remaining balance when filing their taxes.

The IRS realized that many taxpayers missed claiming this credit when filing their 2021 tax returns. According to IRS Commissioner Danny Werfel, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”

This means that if you missed claiming the Recovery Rebate Credit, you may still be eligible to receive a payment.

Who Is Eligible for the $1,400 IRS Stimulus Check?

The majority of eligible taxpayers who qualified for federal stimulus payments have already received them. However, this special round of $1,400 checks is aimed at those who filed their 2021 tax returns but did not claim the Recovery Rebate Credit or mistakenly filled it out as $0, even though they were eligible for the credit.

To qualify for the payment, you must meet the following criteria:

• You filed a 2021 tax return.
• You missed claiming the Recovery Rebate Credit, or you claimed it incorrectly as $0 when you were eligible for it.
• You meet the income and other eligibility requirements set by the IRS.

If you have already claimed the credit on your 2021 return, you will not be eligible for this additional payment.

How Does the $1,400 IRS Stimulus Check Work?

If you are eligible for the $1,400 payment, you don’t need to take any action. The payments will be sent automatically by the IRS this month. They will be directly deposited into the bank account you provided on your 2023 tax return or sent to the address that the IRS has on file.

The IRS expects these payments to arrive by the end of January 2025. However, the amount may vary depending on your eligibility. For most people, the payment will be $1,400 per individual.

If you are one of the eligible taxpayers, the IRS will also send a separate letter to notify you of the special payment. This letter will include details on how the payment was calculated and confirm that you qualify.

What If I Haven’t Filed My 2021 Tax Return Yet?

If you have not filed your 2021 tax return, you can still be eligible for the $1,400 stimulus payment. However, you need to file your tax return and claim the Recovery Rebate Credit by the deadline, which is April 15, 2025.

This is important because if you don’t file by this date, you may miss out on the payment. Even if you didn’t earn any income in 2021 or earned a very small amount, you should still file your return to claim the credit and receive the payment.

How Many Rounds of COVID Stimulus Payments Were There?

There were three rounds of COVID stimulus payments, totaling $814 billion in support for households affected by the pandemic. These payments were made based on income, tax filing status, and the number of dependents in a household.

1. First Round (March 2020): Under the CARES Act, eligible individuals received up to $1,200 per income tax filer and $500 per child.
2. Second Round (December 2020): Under the Consolidated Appropriations Act, eligible individuals received up to $600 per income tax filer and $600 per child.
3. Third Round (March 2021): Under the American Rescue Plan Act, eligible individuals received up to $1,400 per income tax filer and $1,400 per child.

Key Takeaways

• The IRS is sending $1,400 stimulus checks to about 1 million people who missed claiming the Recovery Rebate Credit in 2021.
• You do not need to take any action if you are eligible. The payment will be sent automatically by direct deposit or check.
• If you have not filed your 2021 tax return, you still have time to claim the Recovery Rebate Credit, but you must file by April 15, 2025.
• The payments will vary, but the maximum amount will be $1,400 per individual.

The IRS has made the process straightforward, ensuring that those who are eligible get the support they missed earlier. If you are among the eligible taxpayers, expect to receive your payment soon, and look out for the notification letter from the IRS.