If you’re a New York taxpayer and missed out on receiving a Recovery Rebate Credit stimulus check in 2021, you may have good news coming your way. The Internal Revenue Service (IRS) has announced it will issue automatic payments to eligible taxpayers who failed to claim this credit on their 2021 tax returns.
Let’s dive into what you need to know about these upcoming stimulus checks.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable tax credit designed to help individuals who didn’t receive one or more Economic Impact Payments—commonly known as stimulus payments.
According to the IRS, many taxpayers accidentally skipped claiming the Recovery Rebate Credit when filing their 2021 tax returns. If you left this field blank or entered $0, even though you were eligible, you might soon be receiving a check.
How Much Can You Receive?
The amount you’ll receive depends on your eligibility and financial circumstances, but the maximum payment is $1,400. Nationwide, the IRS is distributing a total of $2.4 billion to ensure eligible taxpayers get the financial support they missed.
Do You Need to Take Action?
No. If you’re eligible, you don’t need to lift a finger. The IRS has streamlined the process to make things easier for taxpayers.
Danny Werfel, the IRS Commissioner, explained:
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic. People will not need to go through the extensive process of filing an amended return.”
Checks began going out in December 2024. Most recipients can expect the funds to be deposited directly into their bank accounts or sent as paper checks to their mailing addresses by late January 2025.
Additionally, the IRS is sending a confirmation letter to let eligible individuals know about their payment.
What If You Didn’t File Your 2021 Tax Return?
It’s not too late! If you haven’t filed your 2021 tax return, you can still qualify for the Recovery Rebate Credit by submitting your return and claiming the credit by April 15, 2025.
Filing now could mean receiving your stimulus payment promptly, so it’s worth taking the time to ensure you don’t miss out.
How Will You Receive Your Payment?
Eligible individuals will receive payments through direct deposit if their bank account details were listed on their 2023 tax return. Otherwise, a paper check will be sent to the address the IRS has on file.
To avoid delays, ensure your bank details and mailing address are up to date with the IRS.
Why Is This Happening Now?
According to IRS data, over one million taxpayers overlooked claiming the Recovery Rebate Credit in 2021. Recognizing the complexity of the tax system, the IRS decided to issue these payments automatically, reducing the burden on taxpayers.
This effort is part of a broader initiative to simplify tax-related processes and ensure individuals receive the benefits they’re entitled to without unnecessary stress.
What Should You Do Next?
Here’s a quick checklist to make sure you’re prepared:
- Check Your Bank Account: If you’re eligible, the funds might already be there.
- Look Out for IRS Mail: A confirmation letter will be sent to inform you of the payment.
- File Your 2021 Tax Return (if needed): Haven’t filed yet? Do so by April 15, 2025, to claim the credit.
- Verify Your Details: Ensure your banking and mailing information is accurate with the IRS.
A Final Reminder
Stimulus payments can provide crucial financial relief, especially during challenging times. If you think you might be eligible, don’t hesitate to take the necessary steps to ensure you receive your payment.
Stay informed, act promptly, and enjoy the peace of mind that comes with knowing you’ve claimed what’s rightfully yours.
