Did you know the IRS is issuing new stimulus checks for eligible taxpayers? If you missed out on the Recovery Rebate Credit during the 2021 tax year, this is your chance to get up to $1,400. The process is automatic for most, but here’s everything you need to know to make sure you don’t miss out.
What’s the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable tax credit designed for people who didn’t receive the Economic Impact Payments (stimulus checks) during 2021. If you filed your taxes but didn’t claim this credit or made an error, the IRS is stepping in to fix the issue and send you what you’re owed.
Who Qualifies?
You may be eligible if:
- You didn’t claim the Recovery Rebate Credit on your 2021 tax return but were eligible.
- You didn’t file a 2021 tax return—but you must file one before April 15, 2025, to claim your money.
The IRS has identified around 1 million taxpayers who qualified for the credit but didn’t claim it. If you’re one of them, you could receive up to $1,400.
How Will I Receive the Payment?
The IRS is making this process as hassle-free as possible:
- Automatic payments: No need to file an amended return. The IRS will directly send your payment.
- How it’s sent:
- Direct deposit if your latest tax return included valid bank details.
- Paper check if your bank info is outdated or unavailable.
Most payments were issued in December 2024 and should arrive by late January 2025. You’ll also receive a letter confirming the payment.
What If I’ve Moved or Changed My Bank Account?
To ensure your payment reaches you, update your information with the IRS:
- For a new bank account: If the account you used is closed, the payment will default to a mailed check.
- For a new address: Use Form 8822 to update your address or log in to your IRS account online.
Why Is This Happening Now?
The IRS uncovered that many taxpayers didn’t claim the credit due to confusion around the filing process. Rather than making taxpayers jump through hoops, the IRS is fixing its mistake by sending out payments automatically. This move ensures fairness and gets money to those who deserve it.
What’s the Deadline to Act?
If you didn’t file a 2021 tax return, there’s still time. Submit your return and claim the Recovery Rebate Credit by April 15, 2025. The earlier you act, the sooner you’ll receive your payment.
Why Does This Matter?
This unexpected stimulus check is a chance to recover money you might have missed out on. With $2.4 billion being distributed nationwide, don’t miss your share. If you’re eligible, the IRS is making sure your patience finally pays off.
