Social Security – The Internal Revenue Service (IRS) has announced that it will distribute $2.4 billion in stimulus checks to one million taxpayers, providing a financial boost as the holiday season concludes.
The payments, set to be issued in the coming weeks, are aimed at individuals who filed tax returns in 2021 but failed to claim the Recovery Rebate Credit (RRC). IRS Commissioner Danny Werfel explained the decision, stating, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. To simplify the process and avoid unnecessary paperwork, we’re making these payments automatic.”
No Action Required for Eligible Taxpayers
Eligible taxpayers will receive their payments by late January, either through direct deposit or as a paper check sent via mail. No action is needed from recipients, as the IRS is handling the process automatically to eliminate the need for amended returns.
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What Is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable tax credit for individuals who missed claiming one or more of the Economic Impact Payments, commonly referred to as stimulus payments, issued during the COVID-19 pandemic.
Eligibility is limited to those who:
- Filed a 2021 tax return but did not claim the RRC or reported $0 in the RRC field while being eligible.
- Have not yet filed a tax return for 2021.
Most eligible individuals have already received their stimulus payments and will not qualify for additional funds. However, taxpayers who have yet to file for 2021 can still claim the RRC by submitting their return by April 15, 2025.
Payment Amounts and Eligibility
The maximum payment amount is $1,400 per eligible individual, but the exact amount will vary depending on specific factors, such as income and filing status.
Payments will be sent to the bank account listed on the taxpayer’s most recent tax return or to the address on file. Taxpayers can visit the IRS website for further details about payment calculations and eligibility.
Who Should Act?
Taxpayers who have not filed for 2021 still have time to claim the Recovery Rebate Credit. Even individuals with minimal or no income may be eligible for a refund if they file before the 2025 deadline.
For questions or additional information, the IRS encourages taxpayers to visit its official website.
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