Discover how the IRS makes automatic stimulus payments to citizens. Determine who will benefit from this project and receive up to $1,400.
The United States Internal Revenue Service (IRS) is aggressively delivering around $2.4 billion to taxpayers who did not receive their COVID-19 stimulus payments. By the end of January, over a million people will have received these special payments, worth up to $1,400 apiece.
Unexpected Benefits for Taxpayers
The IRS has stated that these reimbursements are intended for taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. This credit is intended for persons who did not receive one or more Economic Impact Payments (EIP), sometimes known as stimulus payments.
Stay informed to see if you or someone you know is eligible for this vital financial assistance. “Upon reviewing our internal data, we realized that one million taxpayers overlooked claiming this complex credit despite being eligible,” remarked Danny Werfel, the IRS Commissioner, in a recent announcement.
Ginny Bultman, 61, a Colorado citizen, was one taxpayer who benefited from this error. Bultman and her husband did not receive any stimulus payments in 2021. After reading about the most recent IRS payments, she realized she was eligible for the Recovery Rebate Credit. Just one day later, her check arrived in the mail.
“It was a pleasant surprise,” said Bultman, who owns a locksmith business in her neighborhood. The Bultman family received three delayed stimulus payouts, including one for their minor child, totaling $4,200 by the end of December.
What You Need to Know About IRS Payments
The IRS is sending special payouts to taxpayers who filed a 2021 tax return but left the Recovery Rebate Credit field blank or entered it in as $0, despite being entitled for it.
The payments will vary, with a maximum of $1,400 per participant. The IRS will give approximately $2.4 billion to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. The IRS has made available online information about eligibility and the calculation of stimulus payments.
Why is the IRS Sending Stimulus Checks?
The Recovery Rebate Credit is a refundable credit for persons who did not receive Economic Impact Payments in 2020 or 2021. The IRS initiated this program after evaluating its own data and discovered that many eligible taxpayers who filed a 2021 tax return did not claim the credit.
“To alleviate headaches and swiftly deliver this money to eligible taxpayers, we are making these payments automatic,” Werfel told reporters. “This means individuals will not need to go through the lengthy process of filing an amended return to receive it.”
How Will I Receive My Stimulus Payment?
If you qualify for the Recovery Rebate Credit, you do not need to take any action. The IRS intends to send letters to eligible taxpayers informing them of this special payment. These payments will be sent out automatically this month and should arrive in late January via direct deposit or check.
The monies will be sent to the bank account stated on your 2023 tax return or the home address that the IRS has on file for you.
You could still be able to obtain the money. However, taxpayers must file a tax return and claim the Recovery Rebate Credit by the deadline of April 15, 2025. This is true even if your income from a job, business, or any other source was low or nonexistent, according to the IRS.
How Many COVID-19 Stimulus Payment Rounds Were There?
There were three waves of stimulus payments made to households affected by the pandemic, totaling $814 billion. The IRS dispersed these payments based on numerous parameters, including the recipients’ income, tax return status, and the number of eligible children or dependents.
Details of the Stimulus Payments
In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided eligible persons with up to $1,200 for each person who submitted a tax return, plus an additional $500 for children.
By December 2020, qualified taxpayers will have received up to $600 per individual and $600 per child under the Consolidated Appropriations Act.
Finally, in March 2021, the American Rescue Plan Act granted qualified individuals up to $1,400 for each person filing taxes, plus an additional $1,400 per kid.
These stimulus grants were an important part of the government’s efforts to provide economic relief during the COVID-19 pandemic, assisting millions of households across the country in facing difficult financial times.
