The Internal Revenue Service (IRS) has announced that some U.S. taxpayers may receive a stimulus check by the end of January if they did not claim the Recovery Rebate Credit on their 2021 tax return.
This decision follows a review of IRS data that revealed a significant number of eligible taxpayers who filed returns but failed to claim the credit. The Recovery Rebate Credit is a refundable tax credit designed for individuals who did not receive one or more Economic Impact Payments (EIPs), also referred to as stimulus payments.
“We discovered that nearly one million taxpayers overlooked claiming this complex credit despite being eligible,” said IRS Commissioner Danny Werfel in a press release. “To simplify the process and ensure they get the money they deserve, we are issuing these payments automatically. This means eligible individuals won’t need to go through the hassle of filing an amended return.”
Here’s what taxpayers need to know about these payments.
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What Actions Do Taxpayers Need to Take?
Eligible taxpayers do not need to take any action to receive the stimulus payment. The IRS has already begun issuing payments automatically, with most being distributed in December. Taxpayers can expect to receive their payments by the end of January.
The IRS confirmed that payments will be made either by direct deposit or mailed as a paper check.
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How to Determine Eligibility for the Stimulus Payment
Taxpayers eligible for the stimulus payment will receive a letter from the IRS notifying them of the incoming funds.
To double-check eligibility, taxpayers can review their 2021 tax return to see if the Recovery Rebate Credit field was left blank or marked as $0. If so, they may qualify for the payment.
How Much Will Taxpayers Receive?
The maximum stimulus payment amount is $1,400 per eligible taxpayer, though the exact amount varies based on individual circumstances.
Nationwide, the IRS estimates that $2.4 billion in stimulus payments will be distributed to eligible taxpayers.
Also Read – IRS Tax Refund Deposit Dates 2025: Payment Amount & Eligibility
What If a Taxpayer Did Not File a 2021 Tax Return?
Taxpayers who did not file a 2021 tax return may still qualify for the stimulus payment. To receive it, they must file their 2021 return and claim the Recovery Rebate Credit by April 15, 2025.
“Even individuals with minimal or no income must file a tax return to claim the Recovery Rebate Credit if they are eligible,” the IRS clarified.
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