The IRS is set to distribute stimulus checks to eligible taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. These payments will be automatically sent out without any action needed from the taxpayers.
This initiative follows a review of IRS data, which revealed that around one million eligible taxpayers overlooked this refundable credit. IRS Commissioner Danny Werfel emphasized the importance of facilitating the process by making payments automatic, thus sparing individuals the necessity to amend their tax returns.
Eligible taxpayers can expect to receive their stimulus payments by the end of January, following initial disbursements in December. The payments can be delivered via direct deposit or paper check. Notices will be sent to taxpayers confirming their eligibility for the stimulus payment, which can be determined by checking if the Recovery Rebate Credit section on their 2021 return was left blank or marked as zero. The maximum potential amount for each individual is $1,400, contributing to a cumulative estimated disbursement of $2.4 billion nationwide.
For those who did not file a tax return in 2021, they can still claim the Recovery Rebate Credit by filing their return by April 15, 2025, provided they meet the necessary eligibility criteria.
This move by the IRS not only aims to ease the financial burden on eligible individuals but also highlights the ongoing efforts to ensure that taxpayers receive the financial aid that is rightfully theirs. Overall, this initiative may bring a welcomed financial boost to countless households across the country.