Approximately 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the coming weeks. Funds will be deposited directly into the recipient’s bank account or mailed as a paper check.
The IRS announced it will distribute approximately $2.4 billion to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. People who missed their COVID-19 stimulus payments or received less than the full amount could claim a credit. But the IRS announced Friday that many eligible taxpayers were found to have failed to pay their taxes.
“After reviewing internal data, we found that 1 million taxpayers missed out on claiming this complex deduction when they were actually eligible,” IRS Commissioner Danny Wuerffel said in a statement. I did,” he said.
Here’s more about the windfall this group of taxpayers will soon receive.
What are the chances of receiving a check?
Sorry, but it’s probably pretty low. The IRS said most taxpayers eligible for federal stimulus payments, officially known as Economic Impact Payments, have already received them.
The special payment announced by the IRS applies to taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or entered it as $0 when in fact they were eligible for the credit. will be sent to the person.
How does this work?
Eligible taxpayers do not need to do anything. Payments will be made automatically this month and are expected to arrive by direct deposit or check by late January 2025. Payments will be sent to the bank account listed on the taxpayer’s 2023 return or to the address on file with the IRS.
Payment amounts vary depending on the situation, but the maximum amount is $1,400 per person. The IRS has posted information online about eligibility and how payments are calculated.
The IRS will send another letter to eligible taxpayers notifying them of the special payment.
What if I haven’t yet filed my 2021 tax return?
You may still receive your money. However, according to the IRS, taxpayers must file a tax return by the April 15, 2025 deadline and receive the recovery rebate even if their income from a job, business, or other source is minimal or non-existent. I need to claim a credit.
How many COVID-19 relief payments have been made?
Payments to households affected by the pandemic were made in three rounds, totaling $814 billion. The IRS determined the amount a taxpayer received based on their income, tax filing status, and number of children or eligible dependents.
In March 2020, eligible individuals received up to $1,200 per income tax filer and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act.
According to experts and the IRS, these are some of the most common mistakes to avoid when filing your taxes.
