IRS Stimulus Checks : If you missed out on claiming the IRS stimulus checks in 2021, there’s good news! The IRS has announced that it will be sending automatic payments to those who were eligible but didn’t claim their Recovery Rebate Credit. This initiative aims to ensure that over one million taxpayers receive the financial support they missed. The payments will be automatically sent by late January 2025, either via direct deposit or paper check, providing much-needed relief to eligible taxpayers.
Why Are These Payments Being Issued?
The IRS recently discovered that over one million taxpayers who filed a 2021 tax return failed to claim the Recovery Rebate Credit, which is tied to the IRS stimulus checks. As a result, these individuals missed out on the stimulus payments they were eligible to receive. To rectify this, the IRS is issuing automatic payments, with an estimated total payout of $2.4 billion. This is an effort to ensure taxpayers don’t need to go through the lengthy process of filing an amended return to claim what they missed.
What is the Recovery Rebate Credit?
The IRS stimulus checks were part of a broader financial relief package under the American Rescue Plan Act of 2021. The Recovery Rebate Credit allowed taxpayers to receive up to $1,400 per person. Here’s a brief overview of the program:
- Income Limits: Individuals with an adjusted gross income of $75,000 or less ($150,000 for married couples) were eligible for the full payment, with the amount gradually reducing for those with higher incomes. The full credit phased out completely for individuals earning over $80,000 ($160,000 for married couples).
- Advance Payments: These payments were advanced throughout 2021, before taxpayers filed their 2021 returns.
What Do Taxpayers Need to Know?
For those who failed to claim the Recovery Rebate Credit on their 2021 tax return, the IRS will automatically send a payment. Here’s what you need to know:
- No Action Required: Eligible taxpayers will not need to take any action to receive the payment. The IRS will send these payments automatically.
- Notification: If you’re eligible, expect a notification letter from the IRS when the payment is issued.
- Filing Deadline: If you haven’t filed your 2021 return yet, you have until April 15, 2025, to claim the credit and receive any refunds you may be owed.
Important Points to Remember
- Non-Taxable: The IRS stimulus checks and the Recovery Rebate Credit are not considered taxable income.
- Federal Benefits: Receiving these payments will not affect your eligibility for federal assistance programs such as SSI, SNAP or TANF.
- SSN Requirements: A valid SSN is generally required to claim the credit, but there are exceptions for military families.
What If Your Banking Information Has Changed?
If your bank account information has changed since you filed your 2023 return, don’t worry. If the payment is returned by your bank, the IRS will reissue it and send it to the address on file.
Conclusion
The IRS is committed to ensuring that eligible taxpayers receive their due payments without the hassle of additional paperwork. These automatic payments are part of the IRS’s effort to simplify the process and provide financial relief promptly. Taxpayers can expect their payments by late January 2025, making the start of the new year a bit brighter for many.
Hello everyone, I’m Santanu Roy, an experienced content writer specializing in Finance, Insurance And Stock Market. I contribute to the Forexjano website, where I share informative and engaging content. With over 3 years of Content Writing experience, my mission is to deliver valuable insights that keep you informed and ahead of the curve. Stay connected for the latest news and updates!