The IRS is set to automatically distribute stimulus checks to eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. This decision was made after the IRS identified approximately one million taxpayers who qualified but overlooked claiming the credit, which offers financial assistance to individuals who missed one or more Economic Impact Payments, known as stimulus payments.
IRS Commissioner Danny Werfel emphasized that to streamline the process and ease the burden on taxpayers, these payments will be issued without requiring individuals to file an amended return. Eligible taxpayers can expect to receive their checks either via direct deposit or paper check, with payments having started in December and projected to arrive by late January.
To determine eligibility for the stimulus payment, taxpayers will receive a notification letter from the IRS. Those who want to confirm their eligibility can review their 2021 tax returns to check if they left the Recovery Rebate Credit blank or indicated it as $0.
The maximum amount an eligible individual may receive is $1,400, with an estimated total of $2.4 billion being distributed nationwide. For those who did not file a 2021 tax return but believe they qualify, they can still file their return and claim the Recovery Rebate Credit by April 15, 2025, even if they had minimal or no income.
This move by the IRS presents a silver lining for many taxpayers who may have missed out on essential financial support during challenging times. It simplifies the recovery process for those who are eligible, ensuring that more individuals can benefit from the funds intended to aid them.
In summary, the IRS’s proactive approach aims to help forgotten eligible taxpayers claim funds that could significantly alleviate financial strain, showcasing their commitment to support citizens who may need it most.