IRS to Send Up to $1,400 to a Million Taxpayers Soon

About 1 million US taxpayers will soon receive special payments of up to $1,400 from the IRS. The amount will be deposited directly into eligible people’s bank accounts or sent by mail via paper check.

Why and how is this payment being made?

The IRS has announced that this $2.4 billion is being distributed to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. This credit was for those who did not receive the full stimulus payment issued during COVID-19 or missed it.

IRS Commissioner Danny Werfel said that during a review of internal data, it was found that more than one million taxpayers missed claiming this complex credit even though they were eligible for it.

Will I get this payment?

It is unlikely. The IRS has said that most eligible taxpayers have already received the federal stimulus payment.

This special payment is being sent to taxpayers who left the data field for the Recovery Rebate Credit blank or entered $0 on their 2021 tax return even though they were eligible for this credit.

How will you receive the payment?

• Eligible taxpayers do not need to take any action.
• This payment will be automatically deposited into their bank account or sent by check by the end of January 2025.
• The amount of the payment may vary, but the maximum amount will be $1,400 per person.

The IRS has posted information on its website about eligibility and how the payment will be calculated. In addition, separate letters will also be sent to eligible taxpayers to notify them about the special payment.

Haven’t filed my 2021 tax return yet?

If you haven’t filed your 2021 tax return yet, you may still be eligible for this money. However, you must file your tax return and claim the Recovery Rebate Credit by the April 15, 2025, deadline, even if you have very low or no income.

How many rounds of COVID stimulus payments were there?

A total of $814 billion was paid out in three rounds to households affected by the pandemic.

• March 2020: $1,200 per income tax filer and $500 per child to eligible individuals under the CARES Act.
• December 2020: $600 per income tax filer and $600 per child under the Consolidated Appropriations Act.
• March 2021: $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act.

Conclusion

This special payment from the IRS is bringing relief to taxpayers who did not take full advantage of the COVID stimulus. It not only helps those who missed out on this assistance, but it can also reduce their financial stress. If you too meet the eligibility criteria, make sure that your tax return is filed on time.

This opportunity is not just an economic benefit, but it ensures that eligible citizens can take full advantage of government assistance schemes. If you have not filed your 2021 tax return yet, do not delay. Complete it as soon as possible and take advantage of your rights. This is a golden opportunity to improve your financial situation and ensure that you do not miss out on any potential assistance in the future.

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