The IRS is sending out long-overdue payments to around 1 million taxpayers who failed to claim their 2021 Recovery Rebate Credit. These special payments, worth up to $1,400, will be deposited automatically in the coming weeks. Here’s everything you need to know about the Recovery Rebate Credit and how it could affect you.
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What is the 2021 Recovery Rebate Credit?
The 2021 Recovery Rebate Credit was part of the COVID-19 stimulus relief under the American Rescue Plan Act. This credit offered:
- $1,400 per income tax filer
- $1,400 per eligible dependent
While most Americans received their payments in 2021, the IRS recently identified a small number of taxpayers who either didn’t claim the credit on their 2021 tax returns or received less than they were owed.
Who is Receiving These Payments?
Approximately 1 million taxpayers are eligible for these unclaimed payments. The IRS is sending them to individuals who:
- Filed a 2021 tax return but left the Recovery Rebate Credit field blank.
- Entered $0 in the Recovery Rebate Credit field despite being eligible for the credit.
If you meet these criteria, you might be one of the lucky recipients of this special payment.
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How Much Are the Payments?
The payments vary based on eligibility but can go up to a maximum of $1,400 per individual.
When and How Will You Receive the Money?
The IRS has streamlined the process for issuing these payments:
- Payment Method: Payments will be made via direct deposit or mailed as a check.
- Timeline: The funds should arrive by late January 2025.
- Delivery Details: Payments will be sent to the bank account listed on your 2023 tax return or to the address the IRS has on file.
IRS to Send Up to $1,400 to One Million People: Are You Eligible for a Stimulus Rebate?
Did You Miss Out? Here’s What You Can Do
If you believe you were eligible for the 2021 Recovery Rebate Credit but haven’t received your payment, here’s what you can do:
- Check Your Eligibility: Review your 2021 tax return for the Recovery Rebate Credit field.
- Contact the IRS: Reach out to the IRS to confirm if you qualify for the payment.
- File a Correction: If necessary, amend your 2021 tax return to claim the credit.
This unexpected windfall is a welcome relief for many taxpayers who might not have realized they left money on the table. Keep an eye on your bank account or mailbox—you could be among those receiving this overdue stimulus payment.
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