The IRS is set to distribute stimulus checks to eligible taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This initiative aims to assist individuals who may have overlooked this refundable credit, which compensates those who did not receive one or more Economic Impact Payments, commonly known as stimulus payments.
According to IRS Commissioner Danny Werfel, internal reviews revealed that approximately one million taxpayers failed to claim this credit despite being eligible. To streamline the process and alleviate any potential confusion, the IRS will automatically issue these payments without requiring taxpayers to file amended returns. Payments began to be sent out in December and are expected to be received by eligible individuals by late January.
Taxpayers need not take any action to receive their stimulus check; the funds will be disbursed via direct deposit or mailed as paper checks. Those who qualify will receive notification letters informing them of the forthcoming payment. Eligibility can be confirmed by reviewing their 2021 tax returns; if they left the Recovery Rebate Credit field empty or recorded it as zero, they are likely eligible.
The potential payment amount varies, with the maximum being $1,400 for eligible individuals. The IRS estimates that around $2.4 billion will be distributed nationwide.
For those who did not file their 2021 tax return but believe they are eligible for the stimulus check, they can still claim it by submitting their tax return and claiming the Recovery Rebate Credit by April 15, 2025. This means that individuals with even minimal income from various sources might still qualify for this credit.
This initiative not only provides much-needed financial support for many taxpayers but also simplifies the recovery process by ensuring that funds are quickly and directly issued to those who need them most.