Discover how the IRS is providing automatic stimulus payments to citizens. Find out who will benefit from this initiative and receive up to $1,400.
The United States Internal Revenue Service (IRS) is actively distributing approximately $2.4 billion to taxpayers who missed out on their COVID-19 stimulus payments. By the end of January, nearly a million individuals will benefit from these special payments, receiving up to $1,400 each.
Unexpected Benefits for Taxpayers
The IRS has announced that these payments are designated for taxpayers who did not claim a Recovery Rebate Credit on their 2021 tax returns. This credit is specifically for individuals who did not receive one or more Economic Impact Payments (EIP), commonly referred to as stimulus payments.
Stay informed to see if you or someone you know qualifies for this important financial support. “Upon reviewing our internal data, we realized that one million taxpayers overlooked claiming this complex credit despite being eligible,” stated Danny Werfel, the IRS Commissioner, in a recent announcement.
One taxpayer who benefited from this oversight was Ginny Bultman, a 61-year-old resident of Colorado. Bultman and her husband did not receive a stimulus payment in 2021. After reading about the latest IRS payments, she discovered that she qualified for the Recovery Rebate Credit. Just a day later, her check arrived in the mail.
“It was a pleasant surprise,” remarked Bultman, who runs a locksmith business in her local area. The Bultman family recently received three delayed stimulus payments, including one for their minor child, totaling $4,200 by the end of December.
What You Need to Know About IRS Payments
The special payments announced by the IRS are being sent to taxpayers who filed a 2021 tax return but either left the field for the Recovery Rebate Credit blank or filled it in as $0, even though they were eligible to receive it.
The payments will vary, but the maximum amount will be $1,400 per individual. In total, the IRS will distribute approximately $2.4 billion to taxpayers who did not claim a Recovery Rebate Credit on their 2021 tax returns. The IRS has released online information regarding eligibility and the calculation of the stimulus payment.
Why is the IRS Sending Stimulus Checks?
The Recovery Rebate Credit is a refundable credit for individuals who did not receive their Economic Impact Payments in 2020 and 2021. The IRS launched this initiative after analyzing its internal data and discovering that many eligible taxpayers who filed a 2021 tax return failed to claim the credit.
“To alleviate headaches and swiftly deliver this money to eligible taxpayers, we are making these payments automatic,” stated Werfel. “This means individuals will not need to go through the lengthy process of filing an amended return to receive it.”
How Will I Receive My Stimulus Payment?
If you qualify for the Recovery Rebate Credit, there’s no need for you to take any action. The IRS plans to send letters to eligible taxpayers, notifying them of this special payment. These payments will be automatically sent out this month and should arrive either by direct deposit or check by late January. The funds will be directed to the bank account listed on your 2023 tax return or to the home address the IRS has on file for you.
You might still be eligible to receive the money. However, it’s important for taxpayers to file a tax return and claim the Recovery Rebate Credit before the deadline of April 15, 2025. This applies even if your income from a job, business, or any other source was minimal or nonexistent, according to the IRS.
How Many COVID-19 Stimulus Payment Rounds Were There?
There were three rounds of stimulus payments provided to households affected by the pandemic, totaling a staggering $814 billion. These payments were distributed by the IRS based on several factors, including the recipients’ income levels, their tax return status, and the number of qualified children or dependents.
Details of the Stimulus Payments
In March 2020, under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), eligible individuals received up to $1,200 for each person who filed a tax return, along with an additional $500 per child.
By December 2020, through the Consolidated Appropriations Act, eligible taxpayers received up to $600 per individual and $600 per child.
Finally, in March 2021, the American Rescue Plan Act provided eligible individuals with up to $1,400 for each person filing taxes and an additional $1,400 per child.
These stimulus payments were a crucial component of the government’s efforts to provide economic relief during the COVID-19 pandemic, helping millions of families across the nation navigate challenging financial times.
