If you missed out on the COVID-19 stimulus checks, there’s good news! The IRS is sending out stimulus payments to eligible taxpayers who didn’t claim the Recovery Rebate Credit in 2021. This could mean you’re about to receive some extra money, possibly up to $1,400. Here’s everything you need to know about this automatic payment and how to check if you’re eligible.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit was introduced in 2021 as part of the government’s response to the economic impact of the COVID-19 pandemic. It allowed taxpayers to claim the Economic Impact Payments (also known as stimulus checks) if they didn’t receive them or didn’t receive the full amount.
However, some people missed out on this credit when filing their 2021 tax returns. Whether it was overlooked or the credit was incorrectly marked as $0, these individuals might still be eligible to get the money they missed.
In December 2024, the IRS announced that they would automatically send payments to eligible taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 returns. This move is meant to make sure people who qualify can get the credit without needing to go through the process of filing an amended tax return.
IRS Commissioner Danny Werfel said, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic.”
Who is Eligible for the Stimulus Check?
If you filed your 2021 tax return but didn’t claim the Recovery Rebate Credit (or accidentally claimed $0 when you were eligible), you might be in line for an automatic payment. The IRS will send these payments to eligible individuals without requiring any extra steps from them.
The payments will be sent to people who missed claiming the credit, including individuals who:
- Did not receive all or part of the Economic Impact Payments in 2021.
- Filed a 2021 tax return but didn’t claim the Recovery Rebate Credit.
- Claimed $0 for the Recovery Rebate Credit when they were eligible for a higher amount.
How Much Money Could You Receive?
The amount you can receive varies based on your individual situation. The IRS says the maximum payment is $1,400. This is the same amount that was offered as part of the third round of stimulus checks in 2021.
Across the United States, the total amount being distributed for this program is a whopping $2.4 billion. If you qualify, you could be getting a check for a significant amount, especially if you didn’t get the full stimulus payment earlier.
How Do You Get Your Stimulus Check?
The good news is that the IRS is handling everything for you. If you’re eligible, you don’t need to do anything to receive your payment. The IRS has already begun sending out these automatic payments in December 2024.
If the IRS has your direct deposit information from your most recent tax return, you will likely receive your stimulus check through direct deposit. For those who don’t have direct deposit set up, the payment will be sent by paper check to the address listed on your 2023 tax return.
By late January 2025, you should receive your payment. Along with the check, you will also get a separate letter from the IRS confirming the amount you received.
What If You Didn’t File Your 2021 Tax Return?
If you didn’t file your 2021 tax return, don’t worry — you can still claim the Recovery Rebate Credit and possibly receive a payment. But you must file your 2021 return before April 15, 2025.
Once you file your 2021 taxes and claim the credit, the IRS will process your claim, and you may receive the stimulus payment. Make sure to include the Recovery Rebate Credit on your return when you file, even if you didn’t do so in 2021.
If you miss the deadline or don’t file your tax return, you won’t be eligible for the automatic payment.
Why is the IRS Issuing These Payments?
The IRS’s decision to automatically issue payments comes after a review of taxpayer data. According to Werfel, about one million taxpayers missed out on claiming the Recovery Rebate Credit when they were actually eligible. To make things easier for these taxpayers and avoid confusion, the IRS decided to send these payments without requiring people to file an amended return.
This is part of the government’s ongoing effort to ensure that people receive the full financial support they are entitled to, especially when mistakes or oversights occur.
Key Takeaways:
- If you missed out on the Recovery Rebate Credit when filing your 2021 taxes, the IRS may be sending you an automatic stimulus payment.
- The maximum amount you could receive is $1,400.
- Payments will be automatically sent via direct deposit or paper check by late January 2025.
- If you didn’t file your 2021 taxes, you can still claim the credit by April 15, 2025.
- There’s no action required on your part if you’re eligible — just wait for your payment and a confirmation letter from the IRS.
Conclusion
If you didn’t get your full Economic Impact Payment in 2021, the IRS might owe you money. With the automatic payments being issued, you don’t need to worry about filling out extra forms or filing amended returns. Just check your bank account or mail for a direct deposit or paper check in the coming weeks. If you missed out before, now is your chance to get the money you were entitled to!
(Source: capecodtimes.com)
