The Internal Revenue Service (IRS) revealed on Friday that a batch of “special” automatic payments will be issued in the coming weeks.
The IRS is set to distribute stimulus checks totaling $2.4 billion to approximately one million taxpayers, providing a financial boost as the holiday season ends.
According to internal IRS data, many taxpayers who filed a 2021 tax return did not claim the Recovery Rebate Credit (RRC), prompting the agency to take action by issuing these payments to those who were eligible but did not get them.
“After reviewing our internal data, we discovered that one million taxpayers were unable to claim this complex credit, even though they were eligible to receive it,” said IRS Commissioner Danny Werfel. “To reduce the hassle and get this money to those who are entitled to it, we are making these automatic payments. In this way, taxpayers will not have to submit amended returns to receive their credits.”
Eligible taxpayers will receive their payments at the end of January, either via direct deposit or paper check. No further action will be required by recipients, the IRS confirmed.
Who is eligible for stimulus payments?
While most eligible taxpayers have already received their stimulus payments or claimed the Recovery Rebate Credit, some people who filed a 2021 tax return, or those who have not yet filed, may still qualify for this payment.
These “special” payments will only be issued to taxpayers who are eligible but did not claim the credit on their 2021 return. This includes people who left the RRC field blank or indicated it as $0, despite being eligible for the credit.
Additionally, taxpayers who have not yet filed a 2021 return can still receive a refund if they file and claim the RRC by April 15, 2025, even if their income was minimal or nonexistent.
- Seniors 65 years or older who are already receiving SSI benefits.
- Americans with disabilities who currently receive SSDI benefits.
- veterans who are eligible and already receiving benefits through the Department of Veterans Affairs.
- Residents with a valid Social Security number and updated information in SSA records.
How much money will be received?
The payment amount will vary depending on individual circumstances, but the maximum amount eligible taxpayers could receive is up to $1,400 per person. For more details on payment calculations or eligibility, the IRS recommends visiting your official website.
Payments will be sent to the bank account listed on the taxpayer’s 2023 return or to their registered mailing address.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable credit for people who did not receive one or more Economic Impact Payments (stimulus checks) during the pandemic. Only those who did not claim the RRC on their 2021 tax return or who have not yet filed their 2021 tax return are eligible for this round of payments.
The IRS previously issued three rounds of stimulus checks during the pandemic, so most eligible people have already received their payments and will not qualify for the RRC.
Next tax season for 2025