Eligible taxpayers could see a boost in their bank accounts soon, with stimulus checks worth up to $1,400 arriving by late January.
This round of payments stems from the Internal Revenue Service’s December announcement that it would distribute approximately $2.4 billion to taxpayers who missed out on claiming the Recovery Rebate Credit on their 2021 tax returns.
Why the Stimulus Payments Were Announced
The IRS initiated this distribution after reviewing data that revealed many taxpayers had failed to claim the Recovery Rebate Credit. This credit applies to individuals who didn’t receive one or more of the Economic Impact Payments, often referred to as stimulus checks, during the pandemic.
Who Qualifies for the Payment?
Taxpayers who left the Recovery Rebate Credit section blank or recorded a $0 on their 2021 tax return are eligible for this payment. If you’re unsure whether you claimed the credit, check your 2021 tax return for clarity.
How to Receive the Payment
The good news? No action is required. The IRS started sending payments automatically in December and will continue through the end of January. Eligible individuals will receive a notification letter, and the payments will be either directly deposited into bank accounts or sent as paper checks.
What If You Didn’t File a 2021 Tax Return?
Even those who didn’t file a 2021 tax return may still qualify. However, they must submit their return and claim the Recovery Rebate Credit by April 15, 2025, to be eligible for the payment.
This initiative is part of the government’s ongoing efforts to ensure that no eligible taxpayer is left behind in receiving pandemic-related financial assistance.
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