The IRS is set to send special payments of up to $1,400 to approximately 1 million taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. This move aims to redistribute around $2.4 billion in unclaimed funds to eligible individuals.
To qualify for the payment, taxpayers must have filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or entered it as zero when they were actually eligible. Eligible taxpayers do not need to take any action, and payments will be automatically sent via direct deposit or check by late January 2025.
Those who still haven’t filed their 2021 tax returns can claim the credit by April 15, 2025, with minimal income from a job or business required. However, it’s worth noting that the likelihood of receiving a payment is low, as most eligible taxpayers have already received federal stimulus payments.
The IRS will send separate letters to eligible taxpayers notifying them of the special payment. Here’s what you need to know: the maximum amount per individual is $1,400; payments will vary; and you can check online for eligibility information and how your payment was calculated.
Source: https://apnews.com/article/irs-covid-rebate-payments-40a089de6ebd3d42b82a7ac84a06861d