IRS Announces $1,400 Payments for 1 Million Taxpayers: Are You Missing Out?
The Internal Revenue Service (IRS) is on a mission to put money back in the pockets of taxpayers. In December 2024, the IRS announced that it will issue payments of up to $1,400 to approximately 1 million taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns. Here’s everything you need to know about who qualifies, how to claim the money, and what deadlines you should keep in mind.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was introduced as part of COVID-19 relief efforts. It ensures that individuals who didn’t receive the full amount of Economic Impact Payments (also known as stimulus checks) can still claim their funds. This credit was specifically tied to the third round of stimulus checks issued in 2021, which provided up to $1,400 per person.
If you were eligible for this payment but didn’t receive it—or didn’t claim it when filing your 2021 tax return—the IRS is now stepping in to make things right.
Who Is Eligible for These Unclaimed Stimulus Checks?
Not everyone qualifies for this round of special payments. The IRS has identified individuals who meet the following criteria:
Filed a 2021 tax return but did not claim the Recovery Rebate Credit (either by leaving the field blank or entering $0).
Were eligible for the $1,400 stimulus payment based on their income and filing status.
Eligibility is determined automatically based on tax filings. If you qualify, the IRS will issue your payment without requiring any additional action on your part.
How Much Can You Receive?
The maximum payment is $1,400 per eligible individual. For married couples filing jointly, the amount could be up to $2,800, plus $1,400 for each qualifying dependent.
When and How Will Payments Be Sent?
The IRS began issuing these unclaimed stimulus checks in December 2024. Eligible taxpayers will receive their funds via direct deposit or paper check, depending on the payment method used for their 2021 tax refund. Most recipients can expect to have their money by late January 2025.
The IRS will also send letters notifying taxpayers of their payment details. If you’re expecting a payment, keep an eye on your mailbox and bank account.
What If You Haven’t Filed Your 2021 Tax Return?
If you haven’t filed your 2021 tax return yet, there’s still time to claim the Recovery Rebate Credit. The deadline to file and claim this credit is April 15, 2025. Even if you had little or no income in 2021, you may still qualify for this refundable credit. Filing a return could make you eligible for up to $1,400 per person in your household.
Why Is the IRS Taking This Step?
This initiative is part of the IRS’s ongoing efforts to ensure taxpayers receive all the benefits they’re entitled to. After reviewing tax data, the IRS found that many eligible individuals had overlooked claiming the Recovery Rebate Credit. To address this, the agency is automatically issuing payments without requiring taxpayers to file amended returns.
How to Check Your Eligibility
If you believe you’re eligible but haven’t received your payment by late January 2025, here are a few steps you can take:
Review Your Tax Records: Check your 2021 tax return to see if you claimed the Recovery Rebate Credit.
Use the IRS’s Online Tools: Visit the IRS website to access tools for checking your payment status and eligibility.
Contact the IRS: If you’re still unsure, reach out to the IRS directly for assistance.
Don’t Miss Out on Your Payment
This is a rare opportunity to claim money that may have slipped through the cracks. Whether you’re receiving the payment automatically or need to file your 2021 tax return to claim it, make sure you take action before the April 2025 deadline.
For more information, visit the IRS’s official page on Economic Impact Payments or consult a tax professional to ensure you’re not leaving money on the table.
Final Reminder: Double-check your records and take steps now to ensure you don’t miss out on this financial opportunity. Every dollar counts, and the IRS is making it easier than ever to get what you’re owed.
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