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- Stimulus checks will be available for individuals who did not claim the Recovery Rebate Credit on their 2021 tax filings.
- Returns must be filed by the April 15 deadline.
The IRS has announced it will provide automatic payments to eligible taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns.
The Recovery Rebate Credit offers up to $1,400 per individual, aimed at helping taxpayers who did not receive their full stimulus payments during the pandemic. Although some refunds were issued in January, taxpayers must file by the April 15, 2025, deadline.
The IRS estimates that these payments will result in $2.4 billion being distributed to approximately 1 million eligible taxpayers.
Who qualifies for the IRS payment?
The IRS is processing payments for individuals who filed 2021 returns but failed to claim the “Recovery Rebate Credit” due to oversight.
This credit was established to support individuals who did not receive the full amount of their stimulus checks. Lawmakers provided three rounds of stimulus payments, two in 2020 and one in 2021. While most eligible individuals have received their checks, some were able to claim these funds later through the Recovery Rebate Credit.
The IRS has reminded individuals who did not file their 2021 tax returns that they might still qualify for the credit and must file by April 15, 2025, to access the rebate and any other owed refunds.
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Taxpayers with little or no income can also claim the credit by filing a 2021 return.
Is an application required for the IRS payment?
Payments will be automatically issued either via direct deposit or as paper checks in the mail. Recipients will receive a letter confirming the payment.
“These payments demonstrate our commitment to serve taxpayers effectively,” said IRS Commissioner Danny Werfel. “By analyzing our internal data, we found that a million taxpayers missed claiming this complex credit even though they were eligible. To reduce complications and ensure eligible taxpayers receive their payments, we’re making these transactions automatic.”
Payments will be provided to taxpayers who filed 2021 returns but failed to fill in the Recovery Rebate Credit field or indicated $0 while being eligible for a refund.
When will the IRS distribute the payments?
The IRS has indicated that checks will be dispatched in December, with most payments expected by late January 2025. However, some payments may continue to be issued, especially if returns for 2025 have not yet been filed.
Payments will go to the account listed on the taxpayer’s 2023 return or their most recent address on file. If a bank account has been closed, the IRS will issue a paper check to the address on record.
