Americans still have to deal with rising costs, especially for housing and food, even though the economy has gotten better. Any program that helps or gifts that come as a surprise are a huge financial relief, especially during the holidays.
A direct payment of up to $1,400 will be sent to or deposited into the bank accounts of one million taxpayers at the end of the month. This is good news from the Internal Revenue Service (IRS).
The IRS has confirmed a $1,350 direct payment to these recipients
People who did not claim their Economic Impact Payments (EIPs) during the pandemic will get them automatically from the IRS. The maximum amount each person can get is $1,400.
One million people who did not claim the federal direct payment on their 2021 tax returns will be helped. Commissioner of the IRS Danny Werfel said in a statement that they had found that a million taxpayers had not claimed this credit when they were eligible.
The Internal Revenue Service (IRS) says this is because they are automatically sending these direct payment checks to eligible taxpayers to save time and make sure they get the money without having to ask for a new tax return.
The IRS also says that most taxpayers who were eligible for federal stimulus payments have already gotten them.
One group of people who have not gotten their money yet was found to have filed a 2021 tax return but either left the Recovery Refund Credit data field blank or filled it in with $0 even though they were eligible for the credit.
People who are eligible do not need to do anything because payments will be sent automatically this month to the bank account listed on the taxpayer’s 2023 return. If the direct payment has to be mailed, it will get to the address the IRS has on file in late January 2025.
The IRS will mail letters to qualified taxpayers in addition to posting online the requirements for eligibility and how to figure out the $1,400 limit.
The IRS will send another direct payment to millions of taxpayers who aren’t expecting it
A million people who did not claim the 2021 Recovery Rebate Credit on their 2021 federal tax return will soon get a letter from the IRS telling them they are getting money.
It was made so that people who did not get any economic impact payments or stimulus payments during the pandemic could get a money back.
“We looked at our internal data and found that one million taxpayers missed out on claiming this difficult credit when they were qualified,” said IRS Commissioner Danny Werfel.
We are making these payments automatic to save people time and make sure that taxpayers who are eligible get the money without having to file an amended return, which can be hard to do.
Depending on the filer’s income in 2021 and other factors, the maximum direct payment is $1,400 for each person and an extra $1,400 for each qualifying dependent.
You will not be able to get any of the credit, though, until your adjusted gross income for 2021 is less than $180,000 if you file as a single person, less than $120,000 if you file as a head of household, or less than $160,000 if you file as a married couple.
The agency says that most of the payments, totaling about $2.4 billion, should arrive by the end of January.
As of now, the IRS has said that refunds will be sent to the bank account or address of record listed on the taxpayer’s 2023 tax return or by paper check, whichever method they choose.
The agency said that if you are eligible for a refund but have closed your bank account since filing your 2023 tax return, the bank will send the money back to the IRS and send the refund to the address on file again.
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