IRS Sending $1,400 special Payments to 1 Million Americans: Are You Eligible?

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This holiday season is set to bring extra cheer for approximately one million taxpayers as the Internal Revenue Service (IRS) begins distributing unclaimed federal stimulus checks totaling $2.4 billion.

What Is Happening?

The IRS has announced it will start issuing automatic payments later this month to qualified individuals who missed claiming the Recovery Rebate Credit on their 2021 tax returns.

What Is the Recovery Rebate Credit?

The Recovery Rebate Credit was introduced as part of the federal government’s COVID-19 relief measures. It allows eligible taxpayers to claim any unpaid Economic Impact Payments (stimulus checks) they were entitled to but did not receive.

The IRS identified that many qualified taxpayers who filed their 2021 returns did not claim this credit. To rectify this, the agency is now distributing the payments automatically.

How Much Will You Receive?

  • The IRS will send up to $1,400 per person.
  • The exact amount varies based on several factors, but eligible taxpayers do not need to take any action—payments will be sent automatically.
  • Distribution will begin this month, and payments should reach recipients no later than January 2024.

Who Is Eligible?

Most eligible taxpayers have already received their payments. However, the upcoming disbursements are specifically for those who:

  • Filed a 2021 tax return but either:
    • Left the “Recovery Rebate Credit” field blank.
    • Entered $0 in the field.
  • Did not claim the full amount they were entitled to.

What If You Haven’t Filed a 2021 Tax Return?

The IRS reminds taxpayers who haven’t filed their 2021 tax returns that they might still qualify to receive the payment. However, they must:

  • File their returns by the April 15, 2025 deadline.
  • Claim the Recovery Rebate Credit to receive the payment and any other potential refunds.

How Will You Receive the Payment?

Payments will be sent either:

  • To the bank account listed on the recipient’s 2023 tax return.
  • To the address on record, if no bank account is provided.

Takeaway

If you’re one of the taxpayers entitled to this payment, be on the lookout for a deposit or check arriving soon. The IRS is ensuring that eligible individuals receive the money they deserve without requiring further steps.

Don’t miss this opportunity—check your 2021 tax filings, and if you haven’t filed yet, mark April 15, 2025, on your calendar to claim any unclaimed credits!

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