The Internal Revenue Service (IRS) is set to distribute special payments of up to $1,400 to approximately one million taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.
IRS
Key Details:
- Automatic Distribution: Eligible individuals are not required to take any action. The IRS will automatically deposit the payments into bank accounts or send them via paper checks. These payments are expected to arrive by late January 2025.
IRS
- Eligibility Criteria: This initiative targets taxpayers who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or entered $0 when they were actually eligible for the credit.
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- Payment Amounts: The maximum payment is $1,400 per individual, with the total amount varying based on individual circumstances.
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- Notification: The IRS will send separate letters to eligible taxpayers informing them of the forthcoming payments.
IRS
Background:
The Recovery Rebate Credit was introduced to allow individuals who missed one or more of the COVID-19 stimulus payments to claim them on their tax returns. The IRS identified that many eligible taxpayers overlooked this credit, prompting the current distribution of approximately $2.4 billion in total payments.
Next Steps for Taxpayers:
- Await Payment: Eligible taxpayers should monitor their bank accounts and mailboxes for the arrival of these payments by late January 2025.
- Filing 2021 Tax Returns: Taxpayers who have not yet filed their 2021 tax returns still have the opportunity to claim the Recovery Rebate Credit by filing before the April 15, 2025 deadline.
For more information and to check eligibility, taxpayers can visit the official IRS website.
