More than a million working Americans are still eligible to receive stimulus checks from the pandemic relief initiative.
The IRS is automatically distributing stimulus checks to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. This credit allows taxpayers who missed one or more Economic Impact Payments, or stimulus checks, to receive a refundable credit, as reported by the US Sun.
There were three rounds of stimulus payments, and although the deadlines for the first two rounds have already passed, individuals who did not file a federal return in 2021 can still receive funds from the third round of payments.
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Those eligible have until April 15 to submit their 2021 tax return and claim up to $1,400. The amount they receive will depend on their tax obligations for 2021 or may be included in their tax refund.
Married couples filing jointly with an Adjusted Gross Income of $150,000 or less in 2021 can qualify for up to $2,800 through the Recovery Rebate Credit.
The IRS has announced plans to disperse stimulus payments in 2024 after a review indicated that many eligible taxpayers failed to claim the Recovery Rebate Credit on their 2021 filings. IRS Commissioner Danny Werfel noted that the agency aims to enhance its services, implementing automatic payments to eliminate the need for taxpayers to revise their returns.
The automatic disbursements started in late December 2024 and are anticipated to reach most recipients by late January 2025. Payments will be made via direct deposit or paper check, sent to the bank account or address recorded on the taxpayer’s 2023 return.
Qualifying individuals will also receive a separate letter informing them of their payment. The IRS will continue to process payments as it receives 2021 tax returns.
A recent report suggests that federal income tax refunds in 2025 could be among the highest seen in recent years. The report from Oxford Economics released on Monday indicated that it would be a “favorable” season for taxpayers, who are likely to receive higher refunds due to adjustments in the IRS’s yearly tax brackets.
“Last year, annual tax-code adjustments were more generous than usual as wage growth slowed,” the report stated. “This created a higher likelihood of more households overwithholding their taxes and being entitled to a refund when they file this year.”
For many Americans, tax refunds represent the most significant cash-flow event of the year.
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