By the end of January, around 1 million taxpayers will receive special payments from the IRS, with amounts reaching up to $1,400 per person. This distribution, totaling approximately $2.4 billion, targets taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.
IRS Commissioner Danny Werfel stated that upon reviewing internal data, the agency found that many eligible taxpayers overlooked claiming this credit. The Recovery Rebate Credit was designed to assist individuals who missed one or more Economic Impact Payments (EIPs), which were issued during the COVID pandemic.
One such beneficiary is Ginny Bultman, a 61-year-old from Colorado, who, along with her husband, discovered they qualified for the credit after not receiving a stimulus payment in 2021. She received her check shortly after realizing her eligibility, amounting to a total of $4,200 for late payments, including payments for their underaged son.
Eligible taxpayers are those who filed a 2021 return but either left the Recovery Rebate Credit field blank or reported it incorrectly as $0 despite being eligible. Payments will be made automatically, meaning no additional action is required from the recipients. The IRS will send letters to those eligible, indicating that payments will arrive via direct deposit or check.
If you have not yet filed your 2021 tax return and believe you qualify, it is essential to file by the April 15, 2025 deadline to claim the credit.
The IRS has made efforts to streamline this process to ensure that eligible taxpayers can receive their payments without the need for filing amended returns. This initiative is part of the broader response to assist individuals affected financially by the pandemic, reflecting a commitment to providing support where it is needed most.
In summary, the IRS is taking proactive steps to ensure that taxpayers receive financial relief through automatic stimulus payments, a positive development that highlights the agency’s efforts to assist individuals who may have missed out previously.