Automatic Payments of Up to $1,400 Coming to 1 Million Taxpayers
The Internal Revenue Service (IRS) has announced that it will be issuing automatic “special payments” of up to $1,400 to approximately 1 million taxpayers starting later this month. These payments are intended for individuals who did not claim the 2021 Recovery Rebate Credit on their tax returns for that year and are eligible to receive the money.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable tax credit provided to individuals who did not receive one or more economic impact payments, also known as stimulus checks, sent by the federal government during the Covid-19 pandemic.
Who is Eligible for the Payment?
The maximum payment will be $1,400 per individual, and the amount will vary based on individual circumstances. According to the IRS, eligible taxpayers can expect to receive the money either by direct deposit or a paper check in the mail, along with a separate letter notifying them about the payment.
How Will the Payments be Made?
Direct deposit payments will go to taxpayers who have current bank account information on file with the IRS. If eligible individuals have closed their bank accounts since their 2023 tax returns, payments will be reissued by the IRS through paper checks to the mailing addresses on record.
What Do Taxpayers Need to Do?
Taxpayers who qualify for the 2021 Recovery Rebate Credit do not need to take any action to receive the payment. However, those who haven’t filed 2021 tax returns still have a chance to claim the credit by filing by April 15, 2025.
Important to Note
Claiming the Recovery Rebate Credit will not count as income and interfere with eligibility for certain other federal benefits, including Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Special Supplemental Nutrition Program for Women, Infants and Children (WIC).
More Information
The IRS provides more information on payment eligibility and amounts on its website. Taxpayers can visit the IRS website for more details on the automatic payments and the Recovery Rebate Credit.
Leave a Reply