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The IRS recently announced that approximately 1 million taxpayers will soon receive special payments of up to $1,400. These payments, part of a $2.4 billion distribution effort, will either be directly deposited into eligible individuals’ bank accounts or sent as paper checks via mail.
The payments stem from the Recovery Rebate Credit for the 2021 tax year. This credit allowed taxpayers to claim any COVID-19 stimulus payments they missed or received in incomplete amounts. However, the IRS identified many taxpayers who inadvertently failed to claim the credit despite being eligible.
The IRS is distributing roughly $2.4 billion to taxpayers who failed to claim the Recovery Rebate Credit (RRC) on their 2021 tax returns. The Recovery Rebate Credit allowed taxpayers to claim missed or partial COVID-19 stimulus payments. However, the IRS recently discovered that many eligible taxpayers had overlooked this credit.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” said IRS Commissioner Danny Werfel in a statement.
While the news is exciting, the IRS clarified that the majority of taxpayers eligible for previous stimulus payments have already received them. This special payment is specifically for taxpayers who:
If this applies to you, there’s a good chance you’ll be among the 1 million taxpayers receiving the unexpected payment.
You don’t need to take any action to receive the payment. Here’s what you can expect:
The IRS will also mail letters to eligible taxpayers, detailing their payment amount and how it was calculated.
It’s not too late! Taxpayers who haven’t yet filed their 2021 tax return can still claim the Recovery Rebate Credit. To qualify for the special payment, you must file your return by the April 15, 2025 deadline, even if you had minimal or no income during that year.
The federal government issued three rounds of stimulus payments during the pandemic, totaling $814 billion:
These payments were based on income, filing status, and the number of qualifying dependents.
For more information on eligibility and payment calculations, visit the IRS Recovery Rebate Credit page.
These special payments offer a valuable opportunity for eligible taxpayers to receive financial support they missed during the initial stimulus distributions. Don’t miss out—take steps to ensure you’re prepared to receive what’s rightfully yours!
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