The Internal Revenue Service (IRS) has announced that it will distribute special payments of up to $1,400 to approximately 1 million taxpayers who did not claim the 2021 Recovery Rebate Credit.
These payments are part of the federal government’s efforts to ensure that eligible individuals receive the full amount of Economic Impact Payments (EIPs) authorized during the COVID-19 pandemic.
Who Qualifies for the Payment?
The IRS identified individuals who filed tax returns but did not claim the 2021 Recovery Rebate Credit, despite being eligible. These taxpayers are now set to receive payments automatically, without the need to file an amended return. The maximum payment amount is $1,400 per person.
Distribution Timeline
The IRS began issuing these payments in December 2024, with most recipients expected to receive their funds by late January 2025. Payments will be delivered either through direct deposit or as paper checks sent via mail. Recipients will receive a letter from the IRS confirming their payment.
Encouragement for Non-Filers
In addition to these payments, the IRS is urging individuals who have not filed tax returns for 2020 or 2021 to do so promptly. Filing a return is necessary to claim any missed stimulus payments or other tax credits. The deadline to file and claim the 2021 Recovery Rebate Credit is April 15, 2025.
How to Check Your Eligibility
Taxpayers unsure of their eligibility can create an IRS Online Account to view their payment history and determine if they are entitled to additional funds. The IRS also offers free filing assistance through programs like the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).
It’s important to note that the Recovery Rebate Credit is not considered taxable income and does not affect eligibility for federal benefits. Taxpayers are encouraged to file electronically and choose direct deposit to expedite the processing of their returns and receipt of any refunds.
