IRS to Issue $2.4 Billion in Recovery Rebate Credit Payments to One Million Taxpayers

The Internal Revenue Service (IRS) has announced it will distribute approximately $2.4 billion in stimulus payments to eligible taxpayers who were qualified for the Recovery Rebate Credit (RRC) in 2021 but did not claim it. Around one million taxpayers will receive these payments automatically, either through direct deposit or paper checks, by late January.

Who Qualifies for the Recovery Rebate Credit Payments?

The Recovery Rebate Credit is intended for individuals who missed one or more Economic Impact Payments (stimulus payments) distributed during the COVID-19 pandemic. The IRS’s review found that many taxpayers who filed a 2021 tax return did not claim the RRC, even though they were eligible.

Eligibility Criteria

1. Filed a 2021 Tax Return: Taxpayers who filed but left the RRC field blank or entered “$0” despite being eligible.
2. Non-Filers: Individuals who have not yet filed a 2021 tax return can still claim the RRC by submitting their tax return before April 15, 2025.
3. Income Requirements: Even individuals with little or no income can qualify if they meet other eligibility criteria.

How Much Will Eligible Taxpayers Receive?

The payment amount varies depending on individual circumstances, including filing status, income, and the number of dependents. However, the maximum payment is:

• $1,400 per individual
• Additional payments for qualifying dependents

Key Details About the Payments

• Automatic Distribution: Eligible taxpayers do not need to take any action. The payments will be sent directly to the bank account or address listed in the taxpayer’s 2023 tax return.
• Payment Method: Recipients will either receive a direct deposit or a paper check by mail.
• Deadline for Filing: Taxpayers who have not yet filed for 2021 can still claim the RRC by filing their return before April 15, 2025.

Why Are These Payments Being Issued Now?

IRS Commissioner Danney Werfel stated that internal reviews revealed many taxpayers overlooked the RRC due to its complexity. Rather than requiring taxpayers to file an amended return, the IRS is issuing these payments automatically to minimize inconvenience.

How to Verify or Get More Information

• Visit the official IRS website for detailed information on the Recovery Rebate Credit and stimulus payments.
• Check payment status, eligibility, or calculation methods on the IRS portal.

Conclusion

These automatic Recovery Rebate Credit payments will bring relief to taxpayers who missed out on earlier stimulus payments during the pandemic. Eligible individuals can expect their funds by late January, with no additional action required for those who have already filed their returns. For those yet to file, submitting a 2021 tax return remains the pathway to claim their share of this federal assistance.