The IRS is sending out automatic stimulus payments totaling about $2.4 billion to taxpayers who missed claiming their COVID-19 stimulus payments.
Around 1 million taxpayers will receive payments of up to $1,400 by the end of January.
Why Are These Payments Being Sent?
The IRS discovered that many taxpayers forgot to claim the Recovery Rebate Credit on their 2021 tax returns.
This credit is for people who missed out on one or more Economic Impact Payments (EIPs), also called stimulus payments.
“Our data shows that one million taxpayers didn’t claim this credit even though they were eligible,” said IRS Commissioner Danny Werfel.
To fix this, the IRS decided to send out automatic payments instead of making taxpayers file an amended return.
Who Is Eligible for These Payments?
If you filed a 2021 tax return but didn’t claim the Recovery Rebate Credit or entered $0 by mistake, you may be eligible for this payment.
How Much Money Will You Receive?
Eligible taxpayers can receive up to $1,400 per individual. The amount varies based on each person’s situation.
In total, $2.4 billion will be distributed to those who missed out on their payments.
How Will You Get Your Payment?
If you qualify, you don’t need to do anything. The IRS will send letters to eligible taxpayers notifying them of the payment. Payments will be sent automatically by direct deposit or check by late January.
The money will go to the bank account listed on your 2023 return or to the address the IRS has on file.
A Real-Life Story
Ginny Bultman, a 61-year-old from Colorado, realized she was eligible for the Recovery Rebate Credit after hearing about the IRS payments.
She and her husband had missed their stimulus payments back in 2021. Shortly after learning about the credit, she received a check in the mail.
“It was a pleasant surprise,” said Bultman, who runs a locksmith business. Her family received three late stimulus payments totaling $4,200, including one for their underage son.
What If You Haven’t Filed a 2021 Tax Return?
You may still be able to get your payment. The IRS encourages taxpayers to file a 2021 tax return and claim the Recovery Rebate Credit before the deadline on April 15, 2025, even if they had little or no income during that time.
Why Were Stimulus Payments Given?
During the pandemic, the government issued three rounds of stimulus payments to help people and families facing financial challenges. These payments totaled $814 billion.
Here’s how the payments were distributed:
- March 2020: Up to $1,200 per filer and $500 per child under the CARES Act.
- December 2020: Up to $600 per filer and $600 per child under the Consolidated Appropriations Act.
- March 2021: Up to $1,400 per filer and $1,400 per child under the American Rescue Plan Act.
More Information Online
The IRS has provided additional details online about who qualifies and how the payments were calculated. Eligible taxpayers should keep an eye on their mail or bank accounts for these automatic payments.
By making these payments automatic, the IRS hopes to help people get the money they deserve without extra effort or paperwork.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
