Eligible U.S. taxpayers who missed out on claiming the Recovery Rebate Credit on their 2021 tax return can expect to receive stimulus checks automatically from the IRS by the end of January. This initiative targets individuals who did not realize they were eligible for the refundable credit tied to past Economic Impact Payments (EIPs), commonly known as stimulus payments.
IRS Commissioner Danny Werfel indicated that the decision to automatically send these payments arose after reviewing internal data that revealed approximately one million taxpayers neglected to claim this complex credit. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic,” Werfel stated, emphasizing that these individuals won’t need to go through the process of amending their tax returns.
For those eligible, no action is required to receive the forthcoming payments, which were initiated in December and scheduled to arrive by late January. Payments will be distributed either via direct deposit or mailed out as checks. Taxpayers will also receive a notification letter from the IRS informing them of the incoming funds.
To determine eligibility, taxpayers should check their 2021 tax returns to see if they left the Recovery Rebate Credit field blank or marked it as $0. The maximum amount available for eligible taxpayers is $1,400, contributing to a total estimated distribution across the nation of approximately $2.4 billion.
For individuals who did not file a 2021 tax return, they can still claim the Recovery Rebate Credit by submitting their return by April 15, 2025, and thus become eligible for the stimulus payment. This ensures that even those with little to no income have the opportunity to benefit from this financial assistance.
This move by the IRS not only aims to alleviate financial stress for eligible taxpayers but also highlights the agency’s commitment to ensuring that relief reaches those who need it most, especially in continuing times of economic uncertainty.