The Internal Revenue Service (IRS) announced that approximately one million U.S. taxpayers who missed claiming their stimulus checks during the COVID-19 pandemic will soon receive payments worth up to $1,400.
The payments are part of the 2021 Recovery Rebate Credit for individuals who were eligible but did not claim the credit on their tax returns. IRS Commissioner Danny Werfel revealed on Friday that the agency identified taxpayers who overlooked this complex credit and will issue automatic payments.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” Werfel said in a statement.
Eligibility and Payment Details
The IRS estimates that $2.4 billion in unclaimed payments will be distributed by the end of January 2025. Eligible taxpayers include individuals with a maximum income of $75,000, heads of household earning less than $112,500, and married couples with a combined income below $150,000.
- Maximum Payment: $1,400 per individual.
- Ineligibility: Dependents listed on a 2021 tax return are not eligible.
Taxpayers do not need to take any action to receive the payment. The IRS will automatically send checks to the bank account or mailing address listed on the recipient’s most recent tax return. Those who did not file a 2021 tax return must do so by April 15, 2025, to claim the payment.
Background on Stimulus Payments
The 2021 Recovery Rebate Credit follows three rounds of stimulus payments distributed during the pandemic, totaling $814 billion:
- March 2020: Up to $1,200 per tax filer and $500 per child under the CARES Act.
- December 2020: Up to $600 per tax filer and $600 per child under the Consolidated Appropriations Act.
- March 2021: Up to $1,400 per tax filer and $1,400 per child under the American Rescue Plan Act.
The current initiative seeks to address unclaimed payments from the third round issued under the American Rescue Plan Act in 2021.
IRS Encourages Taxpayers to Check Eligibility
The IRS urges taxpayers to ensure their information is up to date to facilitate the delivery of payments. For further details or to confirm eligibility, visit IRS.gov or consult a tax professional.
By addressing overlooked claims, the IRS aims to provide financial relief to eligible Americans and complete the distribution of pandemic-related stimulus funds.
