The IRS is set to send out $2.4 billion in stimulus payments to eligible US taxpayers by late January.
These payments, issued via direct deposit or paper checks, are targeted at individuals who missed claiming the Recovery Rebate Credit on their 2021 tax returns.
Why are these stimulus checks being issued?
The Internal Revenue Service (IRS) announced this initiative after identifying taxpayers who qualified for the Recovery Rebate Credit but did not claim it.
The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive one or more Economic Impact Payments (commonly known as stimulus payments).
“Our internal review showed that nearly one million eligible taxpayers overlooked this complex credit,” stated IRS Commissioner Danny Werfel.
“To simplify the process and ensure these funds reach those who qualify, we are making these payments automatic. Taxpayers will not need to file an amended return to receive the money.”
How to receive the stimulus payment?
The good news for eligible taxpayers is that no additional action is required to receive these payments.
The IRS confirmed that the checks began going out in December and are expected to arrive by the end of January.
Payments will be issued either as direct deposits or mailed paper checks, depending on the taxpayer’s previous refund method.
IRS stimulus checks: determining eligibility
To determine if you’re eligible for the stimulus payment, the IRS will send a notification letter to those who qualify.
Additionally, taxpayers can review their 2021 tax returns to check if they left the Recovery Rebate Credit section blank or listed it as $0.
This could indicate eligibility for the payment.
IRS stimulus checks payment amounts
The amount of the stimulus payment will vary by individual, with the maximum amount being $1,400.
The IRS estimates that the total disbursed payments will reach $2.4 billion nationwide.
What if you didn’t file a 2021 tax return?
If you didn’t file a 2021 tax return, you may still qualify for a stimulus payment.
However, you must file your 2021 return and claim the Recovery Rebate Credit by April 15, 2025, to be eligible.
“Even those with minimal or no income must file a tax return to claim this credit,” the IRS emphasized.
If you’re eligible for this round of stimulus payments, expect to receive your funds automatically.
For those who missed filing a 2021 return, there’s still time to claim the credit and secure your payment.
Keep an eye out for notification letters from the IRS, and review your 2021 tax return to confirm your eligibility.
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