In a significant move to ensure eligible Americans receive their entitled financial relief, the Internal Revenue Service (IRS) has announced plans to distribute unclaimed stimulus payments to more than one million taxpayers. These payments, amounting to up to $1,400 per individual—for a total of $2.4 billion—are set to be disbursed automatically by late January 2025.
Recovery Rebate Credit
The Recovery Rebate Credit was introduced to provide financial assistance during the COVID-19 pandemic. While most eligible individuals received their Economic Impact Payments (EIPs) automatically, some did not claim the Recovery Rebate Credit on their 2021 tax returns.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement, according to NPR. To address this oversight, the IRS is proactively issuing payments to those who missed out.
One Million Taxpayers
Now, the IRS has identified approximately one million taxpayers who either left the Recovery Rebate Credit field blank or entered $0 on their 2021 tax returns, despite being eligible. These individuals can expect payments of up to $1,400, depending on their specific circumstances. The total amount to be distributed is estimated at around $2.4 billion.
Eligible taxpayers will receive these payments automatically, with no additional action required. The funds will be deposited directly into the bank accounts listed on their 2023 tax returns or sent via paper checks to their addresses of record. The recipients will also receive a separate letter from the IRS notifying them of the forthcoming funds, CBS News reports..
In addition, the IRS also reminds individuals who have not yet filed their 2021 tax returns that they may still be eligible to claim the Recovery Rebate Credit. These taxpayers have until April 15, 2025, to file their returns and claim any refunds or credits due. Filing promptly is encouraged to avoid missing out on potential payments.
While the IRS has issued all first, second, and third Economic Impact Payments, individuals can no longer use the “Get My Payment” application to check their payment status. However, taxpayers can securely access their IRS online account to view the total amounts of their Economic Impact Payments under the Tax Records page.
However, along with this news comes the opportunity to fall for scams and misinformation. The IRS cautions taxpayers to be vigilant against these, especially on social media platforms. Recent false claims about new stimulus payments have circulated online, leading to confusion. IRS Commissioner Danny Werfel advises relying on official IRS communications and the agency’s website for accurate information.
Individuals are encouraged to review their tax filings, stay informed through official channels, and be aware of upcoming deadlines to maximize their entitled benefits.
