The Internal Revenue Service (IRS) said it would send eligible people who did not claim the Recovery Rebate Credit on their 2021 tax returns automatic payments in late January. This is part of ongoing efforts to help taxpayers.
The IRS took this special action after looking at its own data, which showed that many taxpayers who were eligible filed a return but did not claim the credit.
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.
These payments will be sent automatically in December and should arrive in most cases by the end of January 2025. Eligible taxpayers do not have to do anything to get them.
How will you receive your stimulus payments?
Payments will be directly deposited or sent automatically by paper check. Taxpayers who are eligible will also get a separate letter letting them know about the payment.
“The IRS keeps working hard to help taxpayers and make things better,” said Danny Werfel, commissioner of the IRS. We promise to go the extra mile for taxpayers, and these payments show that.” By looking at our own data, we found that a million taxpayers forgot to claim this complicated credit even though they were eligible.
“To keep things simple and get this money to eligible taxpayers as quickly as possible, we are making these payments automatic. That way, these people will not have to go through the time-consuming process of filing an amended return in order to get it,” he said.
Payments depend on a number of factors, but the most each person can get is $1,400. A rough guess is that around $2.4 billion will need to be paid.
The IRS also reminded people who have not filed their 2021 tax returns that they might also be eligible. However, they have until April 15, 2025, to file their returns and claim the credit and any other refunds they may be due.
This money should be sent to people who qualify but did not claim any of the credit on their 2021 tax return by the end of January 2025.
The money will be sent to the taxpayer’s bank account or address that is on file on their 2023 tax return.
The person who gets these 2021 Recovery Rebate Credit payments will get a letter from the IRS. People who filed their 2023 taxes do not need to do anything if they have closed their bank account since then.
The bank will send the money back to the IRS, and the refund will be sent to the address that was given.
People who did not file a 2021 tax return might be able to get the credit if they do file a return.
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