The Internal Revenue Service (IRS)will issue automatic payments by the end of the month to eligible taxpayers who did not claim the Recovery Rebate Credit in 2021.
The credit is meant for people who did not receive one or more Economic Impact Payments (EIP), commonly known as stimulus checks.
Who Will Receive the Payments?
- Taxpayers who filed a 2021 tax return but did not claim the Recovery Rebate Credit.
- Those whose IRS data shows they qualified for the credit but either left the field blank or entered $0.
- No action is needed—payments will be issued automatically.
The IRS Commissioner, Danny Werfel, emphasized that the agency is working to reduce the burden on taxpayers by making the payments automatic.
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He said:
“We realized that about one million taxpayers were eligible but did not claim this complex credit. Instead of requiring them to file amended returns, we are sending the payments directly.”
How Much Are the Payments?
- The maximum payment is $1,400 per individual.
- The estimated total payments amount to $2.4 billion.
When Will Payments Arrive?
- Payments will be direct deposited or sent by paper check starting in December.
- Most recipients should receive their payments by late January 2025.
- A separate letter will be sent to each recipient confirming the payment.
What If You Haven’t Filed a 2021 Tax Return?
The IRS urges taxpayers who haven’t filed their 2021 tax returns to do so as soon as possible.
- Those who file before the April 15, 2025 deadline may still be eligible for the Recovery Rebate Credit and other refunds.
- Even those with little to no income may qualify.
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How Will the IRS Send the Payments?
- Funds will be deposited into the bank account listed on the taxpayer’s 2023 tax return.
- If the account has been closed, the payment will be returned, and a paper check will be sent to the address on file.
- An official IRS letter will be mailed to confirm receipt of the funds.
Checking Eligibility and Payment Amounts
- Taxpayers can check their IRS Online Account to review past Economic Impact Payments.
- More details on eligibility and payment calculations can be found in the 2021 Recovery Rebate Credit FAQs.
Impact on Federal Benefits
The Recovery Rebate Credit does not count as income when determining eligibility for federal assistance programs such as:
- Supplemental Security Income (SSI)
- Supplemental Nutrition Assistance Program (SNAP)
- Temporary Assistance for Needy Families (TANF)
- Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
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IRS Commitment to Helping Taxpayers
As the 2025 tax filing season approaches, the IRS will continue to provide resources to help taxpayers claim credits and deductions they are eligible for, including COVID-19 relief measures and the Earned Income Tax Credit (EITC). Many eligible taxpayers remain unaware of available credits, and the IRS plans to raise awareness during tax season.
Taxpayers who have yet to file their 2021 tax return should do so soon to claim the Recovery Rebate Credit and any additional refunds they may be entitled to. The IRS remains committed to simplifying the process and ensuring eligible taxpayers receive their payments with minimal hassle.
