The IRS is going to send up to $1,400 in automatic payments to about a million taxpayers who are eligible but did not claim the Recovery Rebate Credit on their 2021 tax returns. These payments will happen in late December.
The IRS announced this special measure after looking at its own data, which showed that a lot of people who were supposed to file a tax return but did not did so. People who did not receive any Economic Impact Payments (EIP), also known as stimulus payments, can get a credit called the Recovery Rebate Credit that they can get back.
The IRS made it clear that almost all taxpayers who were eligible for the federal stimulus payments have already received them. However, there are still some who do not have them, and it was found that they filed a 2021 tax return but left the Recovery Rebate Credit data field blank or filled it in as $0, even though they were eligible for the credit.
Who is eligible for the $1,400 IRS refund?
The good news for taxpayers who are eligible for this refund is that they do not have to do anything. In late December, the refunds will be sent directly to the bank account listed on the taxpayer’s 2023 tax return. When a check needs to be mailed, it will get to the address the IRS has on file by the end of January 2025.
Taxpayers whose records with the IRS show that they are eligible for the 2021 Recovery Rebate Credit will only get these December payments.
The IRS will also send letters to all eligible taxpayers to let them know. The eligibility requirements and instructions for figuring out the maximum $1,400 amount are also available online.
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