The Internal Revenue Service is sending up to $1,400 to around 1 million tax filers who qualified for Covid-19 stimulus checks in 2021, but didn't claim them
The IRS has announced that one million taxpayers will automatically receive payments in the coming weeks.
These payments, up to $1,400 each, are intended for individuals who failed to claim the Recovery Rebate Credit on their 2021 tax returns.
“This initiative demonstrates our dedication to assisting taxpayers,” said IRS Commissioner Danny Werfel in a statement.
Determining Your Eligibility
The IRS stated that eligible taxpayers will receive the payments automatically, with no action required.
This includes individuals who filed a 2021 tax return but either left the Recovery Rebate Credit section blank or completed it incorrectly, despite qualifying for the credit.
“After reviewing our internal data, we identified that one million taxpayers missed claiming this complex credit despite being eligible,” Werfel explained. “To simplify the process, we’re issuing these payments automatically, sparing taxpayers the need to file an amended return.”
Payment Details
Recipients will receive notification letters and payments by the end of January, either via direct deposit or check. Payments have already started being distributed this month.
Funds will be deposited into the bank account listed on the recipient’s 2023 tax return. If the account is closed, a check will be mailed to the address on file.
Taxpayers who did not file a 2021 return may still qualify for the payment but must file a return by April 15, 2025, to receive it.
Background on the Recovery Rebate Credit
During the COVID-19 pandemic, the federal government issued three stimulus payments to Americans. The first payment, distributed in 2020 under the Trump administration, was $1,200, followed by a second payment of $600. The third payment, issued in 2021 under the Biden administration, was $1,400.
While most Americans received these payments, those who did not receive the full amounts could claim the Recovery Rebate Credit on their tax returns.
The IRS estimates that approximately $2.4 billion will be distributed to eligible taxpayers in the coming weeks.