The Internal Revenue Service (IRS) announced plans to automatically distribute $2.4 billion in relief payments to approximately 1 million eligible taxpayers who missed claiming their 2021 Recovery Rebate Credit.
These special payments, worth up to $1,400 per individual, represent the final opportunity for Americans to receive pandemic-era Economic Impact Payments they were originally entitled to receive.
The automatic payments began in December 2024 and are expected to reach most recipients by late January 2025. This initiative specifically targets taxpayers who filed their 2021 tax returns but either left the Recovery Rebate Credit field blank or entered “$0” when they were actually eligible for the full credit amount.
Who Qualifies for Automatic Payments!
Qualified taxpayers are those who filed a 2021 tax return, but where the data field for the Recovery Rebate Credit was left blank or was filled out as $0 when the taxpayer was actually eligible for the credit.
No action is required from eligible taxpayers to receive these automatic payments, which will be sent via direct deposit to the bank account listed on their 2023 tax return or by paper check to their address of record.
Income Eligibility Requirements
To be eligible for the credit, 2021 adjusted gross income had to be below $80,000 if filing as a single filer and under $160,000 if filing jointly. The credit phases out at higher income levels, with single filers losing eligibility at $80,000 and married couples filing jointly losing eligibility at $160,000.
Final Deadline Approaching for Non-Filers
Taxpayers who haven’t filed 2021 tax returns may still be eligible for a refund if they file and claim the Recovery Rebate Credit by the April 15, 2025, deadline. This represents the final opportunity to claim these payments, as the three-year statute of limitations expires on this date.
Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent.
The IRS emphasizes that even individuals with very low income or no traditional filing requirement must submit a 2021 return to receive their stimulus payment.
Payment Distribution and Verification!
| Payment Method | Details | Timeline |
|---|---|---|
| Direct Deposit | To bank account on 2023 return | Late January 2025 |
| Paper Check | To address of record | Late January 2025 |
| Notification Letter | Separate payment explanation | After payment issued |
The payments will be automatically direct deposited or sent by paper check; eligible taxpayers will also receive a separate letter notifying them of the payment.
Recipients can verify their payment status and eligibility through their IRS Online Account, which provides detailed information about Economic Impact Payments received.
Frequently Asked Questions
Q: Do I need to take any action to receive the automatic payment? A: No action is required for eligible taxpayers who filed 2021 returns but missed claiming the credit.
Q: What if I never filed a 2021 tax return? A: You must file a 2021 return and claim the Recovery Rebate Credit by April 15, 2025, to receive payment.
Q: How much will I receive? A: Payments vary based on income and filing status, with a maximum of $1,400 per individual.