The Internal Revenue Service (IRS) is set to distribute approximately $2.4 billion in unclaimed stimulus payments to around one million taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.
Key Details:
- Payment Amounts: Eligible individuals may receive up to $1,400.
- Distribution Timeline: Payments will be issued automatically via direct deposit or mailed checks, with most recipients expected to receive their funds by late January 2025.
- Eligibility Criteria: Taxpayers who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or entered $0 incorrectly are eligible. The IRS will notify qualified individuals through separate letters detailing their payment. Internal Revenue Service
Background:
The Recovery Rebate Credit was introduced to provide financial relief during the COVID-19 pandemic, encompassing three rounds of Economic Impact Payments distributed between March 2020 and March 2021. However, due to the complexity of the credit, many eligible taxpayers overlooked claiming it on their 2021 returns.
Next Steps for Taxpayers:
- Await Notification: Eligible taxpayers will receive a letter from the IRS with details about their payment.
- No Immediate Action Required: For those who qualify, no additional steps are necessary to receive the payment.
- Filing Deadline: Taxpayers who have not yet filed their 2021 tax returns still have the opportunity to claim the Recovery Rebate Credit by submitting their return by April 15, 2025. ABC7
Additional Information:
The IRS has completed the issuance of all first, second, and third Economic Impact Payments. Individuals who did not receive the full amount can determine their eligibility for the Recovery Rebate Credit by reviewing their tax records.