IRS Announces Automatic Stimulus Payments – Why Some Taxpayers Will Receive Relief Now!

If you’re living in New York and paid taxes there, think back to 2021. Did you receive a Recovery Rebate Credit stimulus check? If not, don’t worry—there’s still time! The IRS is now making sure those who missed out on the credit will get their stimulus check by the end of this month.

Though the IRS often gets a bad reputation, this time, they’re doing something good. They’ve announced that they will automatically send payments to those who were eligible for the Recovery Rebate Credit but didn’t apply for it when filing their 2021 tax return. The good news is that this will happen without any extra effort on your part.

What is the Recovery Rebate Credit, and Who Qualifies It?

The Recovery Rebate Credit is a special tax credit for people who missed out on one or more Economic Impact Payments (also known as stimulus checks). If you filed your 2021 taxes but either didn’t apply for the credit or made an error, you might be eligible to get your payment now.

So, you may be asking, “How much money can I get?” The amount varies, but the maximum you could receive is $1,400. The IRS is distributing a total of $2.4 billion in these payments.

How Can You Receive Your Stimulus Check?

If you are eligible, there’s nothing you need to do to get your check. The IRS is sending payments automatically, so you don’t have to file any new forms. The checks started being issued in December, and most people should have their payments by late January 2025.

The IRS will send your payment either as a direct deposit to the bank account on your 2023 tax return or as a paper check sent to your address. You will also receive a letter confirming that you are getting the payment.

Even if you didn’t file your 2021 taxes, you may still be able to get a payment if you file your return and claim the Recovery Rebate Credit by April 15, 2025.

What Should You Do if You’ve Changed Your Bank Account or Address?

If your bank account or address has changed since you last filed your taxes, it’s important to update your details with the IRS. This ensures that your payment reaches you without any issues.

For bank account changes, the IRS uses the account information from your most recent tax return. If your account is closed, your payment will be rejected and sent as a paper check instead.

For address updates, the IRS will send your payment to the address they have on file. If you’ve moved, you can notify the IRS by filing Form 8822. You can also update your address by calling the IRS or updating it online.

Why Is the IRS Issuing These Checks Years Later?

The IRS is making up for a mistake made in 2021. After reviewing their data, they discovered that around one million taxpayers didn’t claim the Recovery Rebate Credit, even though they qualified.

There was a lot of confusion about how to claim the credit, and many people didn’t realize they were eligible for the payment. Instead of making taxpayers go through the trouble of filing an amended return, the IRS has decided to take matters into its own hands and send the payments automatically.

This is part of the IRS’s efforts to make things right. By sending out these delayed payments, they’re correcting an oversight and giving people the financial relief they missed out on earlier.

So, if you’re waiting for your payment, don’t worry—it’s on the way! The IRS is doing its best to catch up and make sure that eligible taxpayers get what they deserve.

Source

---

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.