The Internal Revenue Service (IRS) has announced a significant update: automatic payments are being sent to around 1 million taxpayers who did not claim the 2021 Recovery Rebate Credit. These payments aim to assist those who may have missed out on claiming this credit on their tax returns.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable credit provided to individuals who didn’t receive all their Economic Impact Payments (EIPs), commonly referred to as stimulus payments.
If you missed claiming this credit on your 2021 tax return, the IRS has got your back. Eligible taxpayers don’t need to take any action—payments will be sent out automatically.
Who Will Receive the Payments?
These payments are targeted at individuals who:
- Filed their 2021 tax returns but did not claim the Recovery Rebate Credit.
- Were eligible for the credit based on IRS data but left the relevant section of their tax return blank or incorrectly filled it out as $0.
The maximum payment amount is $1,400 per individual, and the total payout is expected to reach $2.4 billion.
When and How Will Payments Be Made?
The IRS plans to issue these payments in December 2024, with most arriving by late January 2025. Payments will be sent directly to the bank accounts or addresses listed on taxpayers’ 2023 tax returns.
Additionally, recipients will get a letter notifying them of the payment. If your bank account has been closed, the IRS will reissue the payment as a check mailed to your address.
Deadline for Non-Filers
If you haven’t yet filed your 2021 tax return, there’s still time to claim the Recovery Rebate Credit. The deadline for filing is April 15, 2025. This applies even if your income was minimal or non-existent.
How to Check Eligibility
To determine if you qualify, access your IRS Online Account and verify the amount of any Economic Impact Payments you received. The IRS provides detailed instructions on how to calculate the 2021 Recovery Rebate Credit on its website.
Good News for Benefit Recipients
Receiving the Recovery Rebate Credit will not affect your eligibility for federal benefits such as:
- Supplemental Security Income (SSI)
- Supplemental Nutrition Assistance Program (SNAP)
- Temporary Assistance for Needy Families (TANF)
- Women, Infants, and Children (WIC)
IRS Commitment to Supporting Taxpayers
As the 2025 tax season approaches, the IRS is working to ensure taxpayers are aware of all credits and deductions they are eligible for, including the Earned Income Tax Credit (EITC). The goal is to make tax benefits accessible to everyone, especially those who may face barriers to claiming them.
What You Should Do Next
If you believe you’re eligible for the Recovery Rebate Credit but haven’t filed your 2021 tax return, act now! Filing your return before the April 15, 2025, deadline ensures you can claim this credit along with any other refunds you might be owed.
For more information, visit the IRS website or consult the FAQ section on the 2021 Recovery Rebate Credit.
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