For many Americans who missed out on one or more pandemic-era stimulus checks, relief is on the way. The Internal Revenue Service (IRS) recently announced that it will be issuing automatic payments, potentially as much as $1,400, to taxpayers who missed out on the Recovery Rebate Credit, which was available to those who didn’t receive their Economic Impact Payments, also known as stimulus checks.
These payments are expected to reach eligible taxpayers by the end of January 2025, but with the deadline approaching, it’s essential to understand who qualifies and how these payments will be issued.
Eligibility: Are You One of the Eligible Taxpayers?
The latest round of payments follows an internal review by the IRS, which identified around one million taxpayers who filed their 2021 tax returns but did not claim the Recovery Rebate Credit. The IRS discovered that these taxpayers missed out on the credit despite being eligible.
If you are wondering whether you qualify for this payment, it’s simple to check. Review your 2021 tax return to see if the Recovery Rebate Credit field is blank or marked as $0. If this is the case, you are likely eligible for the payment.
The IRS expects this payment to total around $2.4 billion, benefiting those who missed out on the economic relief during the pandemic.
How Much Can You Expect?
The amount of money you receive depends on your specific situation, but the maximum payment for eligible individuals is $1,400. The IRS aims to make these payments as automatic as possible, meaning eligible taxpayers won’t need to file an amended return to claim the credit.
The payments will be either directly deposited into bank accounts or sent via paper checks. Eligible taxpayers will also receive a separate letter from the IRS notifying them of the payment.
Background on Stimulus Payments
The COVID-19 pandemic led to three rounds of stimulus payments in the United States—two in 2020 and one in 2021. These payments were part of the government’s efforts to provide economic relief during the health crisis. The total amount of these payments came to around $814 billion, as reported by the Pandemic Response Accountability Committee, a body established to oversee coronavirus relief funds.
While most Americans received their payments on time, some missed out due to various reasons, including issues with tax filings. The latest round of payments from the IRS is intended to ensure that those who were eligible but did not claim the Recovery Rebate Credit receive the relief they deserve.
What IRS Officials Are Saying
IRS Commissioner Danny Werfel commented on the importance of these payments, stating, “The IRS continues to work hard to make improvements and help taxpayers. These payments are an example of our commitment to go the extra mile for taxpayers.”
Werfel explained that the IRS’s internal data revealed that many taxpayers had overlooked claiming the credit, even though they were eligible. In an effort to minimize complications and ensure that eligible taxpayers get their money, the IRS is making these payments automatic. This means that eligible taxpayers do not have to go through the lengthy process of filing an amended return to receive the funds.
What Should You Do Next?
If you haven’t yet filed your 2021 tax return, now is the time to do so. The IRS has encouraged taxpayers to file before the deadline on April 15, or they risk missing out on this crucial credit. Filing your return before the deadline will ensure that you receive the payment and avoid unnecessary delays.
For those who have already filed but did not claim the Recovery Rebate Credit, there is good news—this new payment is automatic, and you don’t need to do anything further to claim your payment. Just watch for a direct deposit or paper check to arrive soon.
Conclusion
If you were among the taxpayers who missed out on pandemic-era stimulus checks, the IRS is offering another chance to get your payment. With payments of up to $1,400 expected to be sent automatically by the end of January 2025, now is the time to check if you’re eligible and take action if you haven’t filed your 2021 return yet. The IRS has committed to making this process as smooth as possible for those who qualify, and there’s no need to go through the complicated steps of filing an amended return.
Stay informed, check your eligibility, and ensure you don’t miss out on this final round of pandemic-era relief.
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