Stimulus Checks on the Way: What You Need to Know
Automatic Payments for Eligible Taxpayers
The Internal Revenue Service (IRS) has announced that certain taxpayers can expect to receive a stimulus check by the end of January. This decision comes after reviewing internal data, which revealed that over one million eligible taxpayers failed to claim the Recovery Rebate Credit on their 2021 tax return.
What is the Recovery Rebate Credit?
The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments. According to IRS Commissioner Danny Werfel, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”
No Action Required
Eligible taxpayers do not need to take any action to receive the stimulus payments, which were sent out automatically in December and should arrive by late January. Payments will be made via direct deposit or paper check, and taxpayers will receive a separate notification letter informing them of the incoming payment.
Verifying Eligibility
Taxpayers can check their 2021 tax returns to see if they left the Recovery Rebate Credit field blank or filled it out as $0. This can help determine if they are eligible for the stimulus payment.
Payment Amounts Vary
The maximum amount an eligible taxpayer could receive is $1,400, with a total estimated amount of $2.4 billion being dispersed nationwide.
Missed the Filing Deadline?
Those who did not file a 2021 tax return can still claim the Recovery Rebate Credit by filing their 2021 return by April 15, 2025. According to the IRS, “Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent.”
Stay Informed
Stay up-to-date on the latest developments regarding stimulus checks and tax returns by visiting the IRS website or consulting with a tax professional.
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