The Internal Revenue Service (IRS) announced that it will distribute $2.4 billion in outstanding stimulus payments this month. This money is going to taxpayers who missed claiming a special tax credit in 2021, even though they were eligible for it.
The Recovery Rebate Credit was introduced as part of COVID-19 relief efforts. However, over 1 million Americans overlooked this credit when they filed their 2021 tax returns, according to IRS data.
Payments Made Easy for Taxpayers
IRS Commissioner Danny Werfel explained the situation, saying, “We realized many taxpayers missed this credit because it can be complicated. To make things easier, we’re sending the payments automatically. Eligible taxpayers won’t have to go through the hassle of filing an amended return to get their money.”
The IRS has confirmed that no action is needed from taxpayers who qualify. The money will be sent to those who left the Recovery Rebate Credit line blank or entered $0 on their 2021 federal tax returns.
Who Is Eligible?
The payments could be as much as $1,400 per person, but the exact amount will vary. These funds come from leftover stimulus money distributed during the pandemic. Remember, there were three rounds of stimulus payments: two in 2020 and one in 2021.
Eligible taxpayers will receive the payment directly into the bank account listed on their 2023 tax return. If the account has been closed, the bank will return the money to the IRS, which will then send a refund check to the address on file.
What About Non-Filers?
If you didn’t file a tax return in 2021, you might still qualify for the payment. However, you must file your 2021 return by April 15 to claim the Recovery Rebate Credit.
The IRS encourages taxpayers to check their eligibility and take advantage of this opportunity. The process is designed to be straightforward, so eligible individuals can access the money they deserve without unnecessary stress.
What to Do Next?
If you believe you might be eligible for this payment, double-check your 2021 tax return to ensure you didn’t miss out. If you left the Recovery Rebate Credit line blank or entered $0, there’s a good chance you’ll receive the payment automatically.
For non-filers, filing your 2021 tax return by the April 15 deadline is critical to secure your payment. Make sure all your information is accurate to avoid delays.
This update serves as a reminder of the importance of reviewing your tax filings carefully. Even small oversights can lead to missed opportunities.
