In December 2024, the Internal Revenue Service (IRS) began sending out special payments to eligible taxpayers who missed out on claiming the Recovery Rebate Credit on their 2021 tax returns. If you are one of these taxpayers, you could receive a stimulus check of up to $1,400 by the end of January 2025. Here’s everything you need to know about these automatic payments and how you can check if you’re eligible.
What Are These Special IRS Payments About?
The IRS has announced that it is sending out $2.4 billion in special payments to eligible taxpayers who did not claim the Recovery Rebate Credit (RRC) when they filed their 2021 tax returns. The Recovery Rebate Credit was linked to the Economic Impact Payments (EIPs), also known as stimulus checks, that were issued to help people during the COVID-19 pandemic.
The IRS discovered that around one million taxpayers failed to claim the RRC, even though they were eligible for it. IRS Commissioner Danny Werfel explained, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”
If you missed out on the RRC, you might now be eligible for a payment that could be as much as $1,400.
Who Is Eligible for These IRS Payments?
Not everyone will receive these special IRS payments. The IRS confirmed that most people who were eligible for the stimulus checks in the past have already received them. However, some taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns may still qualify.
To be eligible for these payments, you must meet the following criteria:
- You must have filed a 2021 tax return.
- You must have left the Recovery Rebate Credit field blank or mistakenly entered “$0” when you were eligible to claim the credit.
- If you did not file a 2021 tax return, you may still be eligible, but you must file one by April 15, 2025, to claim the credit.
How Will the IRS Send the Payments?
The good news is that you don’t need to take any action to receive your payment. The IRS has made the process automatic, meaning eligible taxpayers will not have to go through the lengthy process of filing an amended return.
The IRS will send the payments in two ways:
- Direct deposit: If the IRS has your bank details, the payment will be automatically transferred to your account.
- Paper check: If the IRS does not have your bank account information, you will receive a physical check in the mail.
These payments are expected to reach eligible taxpayers by the end of January 2025. If you are eligible, you will also receive a separate letter from the IRS notifying you about the payment.
How Much Will You Receive?
The exact amount you will receive depends on a few factors, but the maximum payment for one person is $1,400. The IRS has sent an estimated $2.4 billion in total payments.
While most people who were eligible for Economic Impact Payments already received them, this new round of payments is focused on those who missed out because they didn’t claim the Recovery Rebate Credit.
Why Is This Happening?
The IRS has explained that it is taking action because a large number of taxpayers missed out on the Recovery Rebate Credit due to confusion over how to claim it on their 2021 tax returns. By issuing these automatic payments, the IRS aims to help those who were eligible for stimulus checks but didn’t receive them.
IRS Commissioner Danny Werfel emphasized the agency’s commitment to making the process easier for taxpayers, saying, “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic.”
Do You Need to Do Anything?
No, you don’t need to take any action to receive your payment if you are eligible. The IRS is handling everything for you.
If you are one of the eligible taxpayers, the payment will be sent automatically to you in December 2024, and you can expect to see the money in your account or in your mailbox by the end of January 2025.
How Will You Know If You’re Receiving the Payment?
The IRS will send a separate letter to all eligible recipients to let them know about the upcoming payment. The letter will provide details on the amount and how the payment will be delivered.
If you don’t receive the payment by the expected time, the IRS recommends checking your tax status or reaching out to them for further guidance.
Looking Ahead: Keep Filing Your Taxes
While this payment is automatic for those who missed out on the Recovery Rebate Credit, the IRS also encourages everyone to continue filing their taxes accurately. If you missed claiming this credit, now is the time to ensure your tax return is correct and complete for future payments or credits.
Conclusion
The IRS’s special payments are a great relief for many taxpayers who missed out on the Recovery Rebate Credit. With payments of up to $1,400, this is an important opportunity for those who might have been left behind in earlier rounds of stimulus checks. If you are eligible, you don’t have to do anything—just wait for the money to arrive automatically by January 2025.
