The IRS has announced that approximately 1 million taxpayers will soon receive special payments of up to $1,400. These payments, totaling about $2.4 billion, will be automatically deposited into bank accounts or sent as paper checks in the coming weeks.
The payments are being issued to individuals who were eligible for the 2021 Recovery Rebate Credit but failed to claim it on their tax returns. This includes taxpayers who missed or received less than the full amount of a COVID stimulus payment.
According to IRS Commissioner Danny Werfel, internal data revealed that a significant number of taxpayers overlooked the complex Recovery Rebate Credit when filing their 2021 tax returns. The IRS has since identified those eligible and is ensuring they receive the payments without any further action on their part.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” Werfel stated.
Unfortunately, the majority of taxpayers have already received their full COVID-19 stimulus payments. However, this round of payments targets individuals who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or incorrectly listed it as $0 when they were actually eligible.
The IRS has clarified that eligible taxpayers do not need to take any action. Payments will be issued automatically this month, either through direct deposit or as paper checks. Taxpayers can expect to receive the funds by late January 2025.
These payments will be sent to the bank account listed on the taxpayer’s most recent return or to the address the IRS has on file. The maximum payment amount is $1,400 per individual. Additionally, the IRS plans to notify eligible recipients through separate letters detailing the special payment.
To check your eligibility and learn more about how the payments were calculated, visit the IRS website. If you’re eligible, keep an eye on your bank account or mailbox for your special payment soon.
