One million taxpayers will soon receive payments of up to $1,400 from the IRS. who are they?
About 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the coming weeks. The money will be deposited directly into eligible people’s bank accounts or mailed via paper check.
The Internal Revenue Service (IRS) said it will release about $2.4 billion to taxpayers who failed to claim the recovery rebate credit on their 2021 tax returns. People who missed one of the coronavirus stimulus payments or received less than the full amount can apply for the credit. But the IRS said Friday it found that many eligible taxpayers were not doing so.
“By reviewing our internal data, we realized that 1 million taxpayers were ignoring this complex credit application when they actually qualified,” IRS Commissioner Danny Wayfair said in a statement. .
Here’s more on the unexpected cash this group of taxpayers will soon receive:
What are the chances that I will receive a check?
Sorry, probably low. The IRS says most taxpayers eligible for federal stimulus payments, formally known as Economic Impact Payments, have already received them.
The special payments announced by the IRS will be sent to taxpayers who filed their 2021 tax returns but left the Recovery Rebate Credit information field blank or filled it in with $0 when they actually qualified for the credit.
How will this work?
Eligible taxpayers do not need to take any action. Payments will be made automatically this month and should arrive via direct deposit or check in late January 2025.
Payment amounts will vary, but the maximum amount is $1,400 per person. The IRS has posted information online about eligibility and how payments are calculated.
The IRS plans to send separate letters to eligible taxpayers notifying them of this special payment.
What if I haven’t filed my 2021 tax return yet?
You may still receive the money. However, according to the IRS, taxpayers have until the April 15, 2025 deadline to file a tax return and claim the Recovery Refund Credit, even if the income from a job, business or other source is minimal or non-existent.
How many rounds of COVID stimulus payments have there been?
Three rounds of payments totaling $814 billion were issued to households affected by the pandemic. The IRS determines the amount a taxpayer receives based on their income, filing status, and number of children or qualifying dependents.
In March 2020, under the CARES Act, eligible individuals could receive up to $1,200 per income tax filer and $500 per child. In December 2020, eligible individuals could receive up to $600 per income tax filer and up to $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals could receive up to $1,400 per income tax filer and up to $1,400 per child under the American Rescue Plan Act.
