The Internal Revenue Service (IRS) is set to distribute over $2.4 billion in stimulus payments to approximately one million eligible taxpayers who missed out on previous COVID-19 relief funds.
A Million Taxpayers to Receive Up to $1,400 from the IRS
Approximately 1 million taxpayers will automatically receive special payments of up to $1,400 from the Internal Revenue Service (IRS) in the coming weeks. The money will be directly deposited into eligible individuals’ bank accounts or sent via a paper check.
Who Are Eligible for These Payments?
The IRS is distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. People who missed one of the COVID stimulus payments or received less than the full amount were able to claim the credit, but many eligible taxpayers overlooked this complex credit.
How Will These Payments Work?
Eligible taxpayers don’t need to take any action. The payments will go out automatically in December and should arrive by direct deposit or check by late January 2025. They’ll be sent to the bank account listed on the taxpayer’s 2023 return or to the address the IRS has on file.
What If You Haven’t Filed Your 2021 Tax Return Yet?
You may still be able to receive the money, but you need to file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline. Even if your income from a job, business, or other source was minimal or nonexistent, you should still file a tax return to claim this credit.
A Brief History of COVID Stimulus Payments
There were three rounds of payments to households impacted by the pandemic, totaling $814 billion. The IRS based the amounts on taxpayers’ income, tax filing status, and number of children or qualifying dependents. The payment amounts were as follows:
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In March 2020, eligible individuals received up to $1,200 per income tax filer and $500 per child under the CARES Act.
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In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act.
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In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act.
