IRS $1400 payments/ Recovery Rebate Credit/ COVID stimulus checks/ IRS automatic payments 2025/ WASHINGTON/ Newslooks/ J. Mansour/ Morning Edition/ The IRS is issuing up to $1,400 in automatic payments to around 1 million taxpayers who missed claiming the 2021 Recovery Rebate Credit. These payments, totaling $2.4 billion, will go out by January 2025 to eligible individuals who filed a 2021 tax return but overlooked claiming the credit.
IRS to Send $1,400 Stimulus Payments: Quick Look
What’s Happening?
- Who’s Eligible: Taxpayers who failed to claim the 2021 Recovery Rebate Credit despite qualifying for it.
- Payment Details: Up to $1,400 per individual, sent automatically via direct deposit or mailed check.
- Timeline: Payments begin in December 2024 and should arrive by late January 2025.
Key Points
- No Action Needed: Eligible recipients will be notified by letter after payment.
- Filing Deadline: Taxpayers can still claim missed credits by filing their 2021 return by April 15, 2025.
- Background: The payments are part of the COVID-era stimulus efforts, with three rounds of Economic Impact Payments issued from 2020 to 2021.
IRS to Send $1,400 Payments to 1 Million Taxpayers: Are You Eligible?
Deep Look
What’s Behind the Payments?
The IRS recently announced it will distribute $2.4 billion to roughly 1 million taxpayers who failed to claim the 2021 Recovery Rebate Credit. This credit was available for individuals who missed or received less than the full amount of COVID stimulus payments under the American Rescue Plan. The IRS identified these cases through internal data analysis.
IRS Commissioner Danny Werfel stated:
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”
Who Will Receive the Payments?
Eligible taxpayers are those who:
- Filed a 2021 tax return but left the Recovery Rebate Credit field blank or entered $0 despite qualifying for the credit.
- Meet the income and dependent criteria for the stimulus payments under the American Rescue Plan Act.
The payments will be automatically sent, so recipients do not need to take further action.
How Much Will Each Taxpayer Receive?
The maximum payment is $1,400 per individual. The exact amount varies based on income, tax filing status, and the number of dependents. Payments will be delivered via direct deposit or mailed checks to addresses or accounts listed on the taxpayer’s 2023 tax return.
What About Taxpayers Who Haven’t Filed?
For those who haven’t yet filed a 2021 tax return, there’s still an opportunity to claim the credit. However, taxpayers must submit their returns by April 15, 2025, to qualify.
A Look Back at COVID Stimulus Payments
The Recovery Rebate Credit was part of a broader stimulus initiative during the pandemic:
- March 2020 (CARES Act): Up to $1,200 per filer and $500 per child.
- December 2020 (Consolidated Appropriations Act): Up to $600 per filer and $600 per child.
- March 2021 (American Rescue Plan Act): Up to $1,400 per filer and $1,400 per child.
The IRS distributed $814 billion across three rounds of stimulus payments.
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