The Internal Revenue Service (IRS) recently announced that it will soon be sending out stimulus payments to individuals who did not receive one or more payments they were eligible for during the COVID-19 pandemic. In total, the IRS plans to distribute an estimated $2.4 billion in unclaimed payments, with the money expected to arrive in bank accounts or mailboxes by the end of January 2025.
Who is Eligible for the Payments?
Many taxpayers received their Economic Impact Payments (EIP), also known as stimulus payments, as well as a Recovery Rebate Credit during the pandemic. However, some individuals may have missed out on these payments due to errors when filing their 2021 tax returns. According to the IRS, these taxpayers may not have claimed the Recovery Rebate Credit properly or left the field blank altogether. These individuals will now receive automatic payments, saving them the trouble of filing an amended return.
The IRS has confirmed that it is using 2023 tax return information to determine eligibility. For those who did not claim the credit or missed out on the payments, the IRS is taking special steps to ensure they get their money without any additional paperwork or hassle. The payments will be sent automatically, which means eligible individuals won’t have to go through the process of filing an amended return to claim the credit.
How Much Money Can You Expect?
The amount of money a person can receive varies, but the maximum amount per individual could be as much as $1,400. This payment will be based on the data from the taxpayer’s 2023 return, including bank account and address details. These payments are expected to arrive by late January 2025, and the IRS has made it clear that they are working hard to ensure all eligible taxpayers receive the payments without delays.
Why Are These Payments Being Sent?
According to IRS Commissioner Danny Werfel, the agency noticed that many taxpayers who were eligible for the Economic Impact Payment or the Recovery Rebate Credit missed out because they did not claim the credit or made an error when filing their 2021 tax return. The IRS is committed to helping taxpayers receive the money they are entitled to and is making these payments automatic to reduce the stress of filing additional paperwork.
“The IRS continues to work hard to make improvements and help taxpayers,” Werfel said in a statement. “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.”
What Should You Do if You Haven’t Filed Your 2021 Tax Return?
The IRS also reminds individuals who haven’t yet filed their 2021 tax returns that they may still be eligible for the stimulus payment. However, they must file their return before the deadline of April 15, 2025, to claim the credit and any other refund they may be owed.
How Will the Payments Be Sent?
The IRS will use the taxpayer’s most recent bank account and address details from their 2023 tax return to send the payments. This means that if your bank account or mailing address has changed, it’s important to make sure your 2023 return reflects the correct information.
(Source : msn.com)
