What’s New
The Internal Revenue Service (IRS) will issue special payments to over 1 million people who did not claim their 2021 federal stimulus checks on their tax returns. The agency will send out a total of $2.4 billion in automatic payments later this month. These payments are a refundable credit for individuals who did not receive one or more stimulus payments, officially known as Economic Impact Payments (EIP).
Despite the resilience of the US economy, many Americans are still struggling with higher prices, including food and housing. The IRS came to this decision after reviewing its internal data, which revealed that 1 million eligible taxpayers did not claim the credit they were owed. Those who left the data field for the Recovery Rebate Credit blank or wrote “$0” are eligible for these payments.
The Recovery Rebate Credit was created for people who did not receive all or some of the three stimulus payments issued between 2020 and 2021. Payments to eligible taxpayers will vary and reach a maximum of $1,400 per individual.
IRS Commissioner Danny Werfel stated, “The IRS continues to work hard to make improvements and help taxpayers. These payments are an example of our commitment to go the extra mile for taxpayers. Looking at our internal data, we realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible.”
To minimize headaches and get the money to eligible taxpayers, the IRS is making these payments automatic. Therefore, eligible individuals will not need to go through the extensive process of filing an amended return to receive the payment. They should receive the payment by the end of December or by late January 2025.