New York taxpayers, here’s some good news! If you didn’t receive a Recovery Rebate Credit stimulus check back in 2021, you could be getting one soon. The Internal Revenue Service (IRS) has announced that it will be issuing automatic payments to people who missed out on claiming this credit on their 2021 tax returns. These payments could be coming your way by the end of January 2025.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit is a tax credit for individuals who didn’t receive one or more of the Economic Impact Payments, also known as stimulus payments. If you filed your 2021 tax return but forgot to claim this credit or left it at $0 when you were actually eligible, the IRS will now send you a stimulus check automatically. The goal is to help those who missed out on the money they were entitled to without requiring them to go through the lengthy process of filing an amended return.
Why Is This Happening?
IRS Commissioner Danny Werfel explained that internal data showed over one million taxpayers did not claim the Recovery Rebate Credit despite being eligible. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic,” said Werfel. “This means these individuals will not need to file an amended return to receive the payment.”
Who Is Eligible for The Recovery Rebate Credit?
If you were eligible for one or more stimulus payments but didn’t receive them or didn’t claim them on your 2021 tax return, you may qualify for the Recovery Rebate Credit. The credit is refundable, which means you could receive money even if you owe no taxes.
Even if you haven’t filed your tax return yet, you still have a chance to claim it. The IRS recommends that anyone who hasn’t filed for 2021 should do so by April 15, 2025, to receive the payment.
How Much Could You Receive?
The IRS has stated that the maximum amount you could receive is $1,400. The total amount being distributed nationwide is around $2.4 billion. So, if you missed out on the stimulus payment, this could be a significant amount of money coming your way.
How Do You Get the Stimulus Check?
The good news is that you don’t have to do anything to receive the stimulus check if you are eligible. The IRS is making the payments automatically. If you have a bank account listed on your 2023 tax return, you should receive the payment through direct deposit. Otherwise, a paper check will be mailed to your address by late January 2025. You will also receive a separate letter informing you of the payment.
What if You Didn’t File Your 2021 Tax Return?
If you haven’t filed your 2021 tax return yet, don’t worry. You may still be eligible for the Recovery Rebate Credit. To claim it, all you need to do is file your 2021 tax return and claim the credit by April 15, 2025. Once the IRS processes your return, they will send you the stimulus payment automatically if you qualify.
More Money for New Yorkers
This comes after another announcement that New York taxpayers could also receive up to $500 in ‘refund’ checks under a new plan by Governor Kathy Hochul. The state is working on several initiatives to provide financial relief to New York residents. So, if you are eligible for both the Recovery Rebate Credit and the state refund, you could be receiving even more money in your pocket!
Bottom Line
If you’re a New York taxpayer who missed out on claiming the Recovery Rebate Credit in 2021, you might soon see an automatic stimulus payment coming your way. No action is required on your part, but it’s always good to make sure your tax returns are filed correctly to ensure you don’t miss out on any future payments. If you haven’t filed your 2021 tax return yet, you have until April 2025 to do so and claim the credit.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates.
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.
