The Internal Revenue Service (IRS) is set to distribute approximately $2.4 billion in stimulus payments to taxpayers who missed out on their COVID-19 relief funds. By the end of January, nearly a million Americans will benefit from these special payments, receiving up to $1,400 each.
Unexpected Financial Relief for Taxpayers
The IRS has announced that these payments are intended for individuals who did not claim a Recovery Rebate Credit on their 2021 tax returns. This credit applies to those who never received one or more Economic Impact Payments (EIP), also known as stimulus payments.
“Upon reviewing our internal data, we realized that one million taxpayers overlooked claiming this complex credit despite being eligible,” stated Danny Werfel, IRS Commissioner, in a recent announcement.
One such recipient, Ginny Bultman, a 61-year-old Colorado resident, was unaware she qualified until she read about the IRS initiative. She and her husband, who run a locksmith business, had missed their 2021 stimulus payment. To their surprise, they received a check the very next day, totaling $4,200 after including additional payments for their minor child.
What You Need to Know About These IRS Payments
The IRS is sending payments to taxpayers who filed a 2021 return but either left the Recovery Rebate Credit blank or entered $0, despite being eligible.
The maximum amount per individual is $1,400, with a total of $2.4 billion being distributed. The IRS has also released online resources to help individuals determine their eligibility and the payment calculation process.
Why Is the IRS Sending Stimulus Checks Now?
The Recovery Rebate Credit is a refundable credit designed to compensate individuals who did not receive their Economic Impact Payments in 2020 and 2021. The IRS identified a large number of taxpayers who failed to claim this credit, prompting the decision to issue automatic payments.
“To alleviate headaches and swiftly deliver this money to eligible taxpayers, we are making these payments automatic,” Werfel explained. “This means individuals will not need to go through the lengthy process of filing an amended return to receive it.”
How Will You Receive Your Stimulus Payment?
If you qualify, no action is required. The IRS will send automatic payments via direct deposit or paper check, which should arrive by late January. Notifications will be sent to eligible taxpayers through official IRS letters.
To ensure you receive your payment, file a tax return before April 15, 2025. This applies even if you had little or no income in the given tax year.
How Many COVID-19 Stimulus Payments Were Issued?
Since the onset of the pandemic, the U.S. government has provided three rounds of stimulus payments, totaling $814 billion, based on income, tax status, and dependents.
Breakdown of Past Stimulus Payments:
- March 2020 (CARES Act): Up to $1,200 per individual and $500 per child.
- December 2020 (Consolidated Appropriations Act): Up to $600 per individual and $600 per child.
- March 2021 (American Rescue Plan Act): Up to $1,400 per individual and $1,400 per child.
These payments played a crucial role in providing economic relief to millions of families nationwide during the financial challenges brought on by the pandemic.
If you or someone you know missed out on previous stimulus payments, check your eligibility now and ensure you receive the financial support you deserve.
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