Approximately one million taxpayers in the United States could soon receive an unexpected stimulus check from the government. The payments, which may arrive by mail or direct deposit, are intended for individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns.
Key Details of the Recovery Rebate Credit
The maximum payment eligible taxpayers could receive is $1,400, as announced by the IRS in a recent press release. In total, the U.S. government is expected to return an estimated $2.4 billion to taxpayers through these payments.
Importantly, taxpayers who have not yet filed their 2021 tax returns may still qualify for the credit. However, they must file their claims by April 15 to secure these payments or any other refunds owed to them.
Notifications and Payment Process
Eligible taxpayers will receive a letter from the IRS informing them about these 2021 Recovery Rebate Credit payments. The letter will outline the details of the payment and provide additional information on the process.
For individuals who have closed their bank accounts since filing their 2021 tax returns, there is no need for additional action. According to the IRS press release, the bank will return the payment to the IRS, and the agency will reissue the refund to the taxpayer’s address on record.
Payment Timeline
Payments are expected to be distributed by late January, either through direct deposit or mailed checks. Taxpayers are encouraged to ensure their address and banking information are up-to-date with the IRS to avoid delays.
A Commitment to Simplifying the Process
To simplify the process and avoid unnecessary complications, the IRS has made these payments automatic. Eligible individuals will not be required to file an amended return to claim their payments, saving them time and effort.
How to Check Eligibility
Taxpayers can verify whether they received the Recovery Rebate Credit by reviewing their 2021 tax returns. The credit, which also includes the third round of stimulus checks issued in March and April 2021, should be listed on the return.
For added convenience, taxpayers can log into their IRS online accounts to confirm their eligibility and payment status.
A Reminder for Taxpayers
The IRS urges all taxpayers who believe they might qualify for the Recovery Rebate Credit to review their tax records and take action if necessary. Filing by the April 15 deadline is critical to receiving any unclaimed credits or refunds.
By ensuring that eligible individuals receive the payments they are entitled to, the IRS aims to provide additional financial relief and support during these challenging times.
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