The IRS has begun distributing $2.4 billion in stimulus checks under the Recovery Rebate Credit program to aid taxpayers who missed out on earlier economic relief.
At a Glance
- The IRS will issue $2.4 billion in stimulus funds to one million taxpayers.
- Eligible individuals will receive up to $1,400, automatically and without action needed.
- Payments will be received via direct deposit or mailed as checks by late January.
- Eligible filers must have income under specified thresholds to qualify.
IRS Issues Payments to Eligible Taxpayers
The Internal Revenue Service (IRS) will distribute $2.4 billion in stimulus checks to one million taxpayers who overlooked or inaccurately reported their Recovery Rebate Credit on 2021 tax returns. This distribution will occur automatically, requiring no amendments or actions from taxpayers. Eligible individuals can anticipate receiving up to $1,400 through direct deposits or paper checks by late January.
The distribution primarily targets those who did not receive the Economic Impact Payments or made a mistake on their 2021 tax filings. IRS Commissioner Danney Werfel stated, “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.
Who Qualifies for the Recovery Rebate Credit?
Eligibility for these payments includes single taxpayers earning less than $80,000, married couples earning under $160,000, and heads of households with incomes below $112,500. Taxpayers who filed a 2021 tax return but did not claim the Recovery Rebate Credit can expect payments. Importantly, dependents claimed in 2021 do not qualify for these payments. The funds aim to provide economic relief to those who missed out on prior stimulus payments.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.” – IRS Commissioner Danney Werfel
The IRS urges those who may be eligible and have yet to file a 2021 tax return to file by April 15, 2025, to claim the credit. The Recovery Rebate Credit will not count towards federal benefits eligibility, ensuring that recipients receive full benefits.
Efficient Process Without Extra Hassle
The IRS’s proactive approach means eligible taxpayers will be notified by letters regarding their eligibility and payments. The automatic nature of this distribution streamlines the process significantly. Eligible taxpayers do not need to amend their filings; the IRS will send payments directly to the banking account or address listed on their 2023 tax return. Such logistical precision ensures the funds reach their intended recipients promptly and efficiently.
Overall, this initiative by the IRS reflects a diligent effort to rectify previous omissions and extend financial aid to qualifying Americans, thereby ensuring economic sustenance where it’s needed. As part of a broader effort, this distribution complements the federal government’s prior three rounds of stimulus payments, reinforcing support mechanisms established during the COVID-19 pandemic.
Sources:
- Who will receive $1,400 IRS stimulus checks? Why are they being sent? Here’s what to know
- IRS announces special payments going this month to 1 million taxpayers who did not claim 2021 Recovery Rebate Credit
