 is set to distribute approximately $2.4 billion in special payments to roughly one million taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns.){kind=link}
The Internal Revenue Service (IRS) is set to distribute approximately $2.4 billion in special payments to roughly one million taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns.
The payments, which can be up to $1,400 per eligible individual, will be automatically issued starting in December 2024 and are expected to reach recipients by late January 2025.
The Recovery Rebate Credit was part of the government’s stimulus efforts aimed at providing financial relief during the COVID-19 pandemic.
However, many taxpayers either overlooked or were unaware that they could claim this credit when filing their 2021 taxes. The IRS has now taken steps to correct this, ensuring that those who qualify will receive the financial assistance they are owed.
How the Payments Work
Eligible individuals do not need to take any action to receive their payments. The IRS will automatically distribute funds either through direct deposit or by mailing paper checks to those who qualify.
The payments are intended to assist individuals who missed out on one or more of the Economic Impact Payments (stimulus payments) issued during the pandemic.
For many taxpayers, this $1,400 payment is the final opportunity to claim any additional relief under the Recovery Rebate Credit for 2021.
While the majority of eligible taxpayers received their payments earlier, these distributions will close the gap for those who missed out due to an oversight or misunderstanding when filing their returns.
What If You Haven’t Filed Your 2021 Return?
Taxpayers who have yet to file their 2021 tax return may still be eligible for the Recovery Rebate Credit if they were previously unaware of its availability. The IRS encourages individuals who have not yet filed to do so by the April 15, 2025, deadline in order to claim the credit.
Even those with minimal or no income may benefit from filing a return, as this ensures eligibility for refunds or credits, including the Recovery Rebate Credit.
A Lifeline for Many Americans
The IRS estimates that millions of taxpayers were eligible but failed to claim their stimulus payments, potentially leaving substantial sums unclaimed.
This new round of distributions represents the IRS’s ongoing efforts to provide much-needed financial assistance, especially to those still recovering from the economic effects of the pandemic.
For more information about the Recovery Rebate Credit or to check eligibility, taxpayers are advised to visit the IRS website or consult with a tax professional.
This development represents a crucial move toward ensuring that eligible individuals receive all of the financial support intended for them.
The $2.4 billion distribution is a vital lifeline for many families and individuals as they continue navigating the challenges of post-pandemic recovery.
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