The Internal Revenue Service has gone “the extra mile” in its efforts to “work hard to make improvements and help taxpayers.” After reviewing internal data, it discovered that approximately one million taxpayers are owed a payment because roughly $2.4 billion in federal stimulus checks have yet to be claimed.
The IRS has announced that it began issuing automatic payments at the end of last year to qualified individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns.
The Recovery Rebate Credit is a tax credit created by the federal government in response to the COVID-19 pandemic. It allows eligible taxpayers to claim the full amount of Economic Impact Payments or stimulus payments that they were due but did not receive.
The tax agency said it is sending the money after discovering that many qualified taxpayers who filed a return did not claim the credit.
The #IRS has simple steps you can take now to make the upcoming tax filing season easier:
•Create or access your IRS Online Account for info
•Gather and organize your tax records
•Check your withholding
•Set up direct deposit for a faster refundhttps://t.co/dVnYBUvGhU pic.twitter.com/i0zywkIXrK— IRSnews (@IRSnews) December 24, 2024
The IRS will send $1,400 ‘special payments’ to 1 million people: See if you are one of the beneficiaries
The IRS will distribute checks based on a variety of factors, but the maximum amount is $1,400 per individual. The agency assures eligible taxpayers that they do not need to take any action because the payments will be made automatically starting this month.
The funds will be transferred to the recipient’s bank account or address listed on their 2023 tax return by the end of January, at the latest.
The majority of people who qualify for the Recovery Rebate Credit have already received their money. The outstanding payments will be made to eligible taxpayers who filed a 2021 tax return but left the “Recovery Rebate Credit” data field blank or filled it out as $0.
The IRS also reminds taxpayers who have not filed their 2021 tax returns that they may still be eligible to receive the payment. To claim the credit and any other refund they may be owed, they must file their returns by April 15, 2025.
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