The holidays have arrived and some of us are getting a letter from Santa — or well, the IRS. The IRS is preparing to distribute nearly 1 million $1,400 stimulus checks to taxpayers in the coming weeks. These payments will be sent either as direct deposits to bank accounts or as paper checks through the mail.
The payments are part of $2.4 billion being issued to individuals who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This credit was available to those who did not receive a COVID stimulus payment or received less than the full amount they were eligible for. IRS officials recently discovered that many taxpayers who qualified for the credit failed to claim it.
“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. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
Not sure if you’ll receive a stimulus check? Here’s everything you need to know.
Who Qualifies for the $1,400 Stimulus Payment?
Most taxpayers eligible for federal stimulus payments, officially called Economic Impact Payments, have already received them. However, these new payments target taxpayers who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or incorrectly listed $0 when they were eligible.
How Will The Stimulus Payments Be Issued?
Taxpayers who qualify won’t need to do anything to receive their payments, as they will be distributed automatically. The IRS plans to send the funds either by direct deposit or paper check, with most expected to arrive by late January 2025. Deposits will be made to the bank account listed on the taxpayer’s 2023 return, or a check will be mailed to the address the IRS has on record. Each eligible individual could receive up to $1,400.
Additionally, the IRS will issue notification letters to inform recipients of their eligibility and explain how the payment amount was determined.
For Those Who Haven’t Filed a 2021 Tax Return
It’s not too late to file your 2021 taxes. Taxpayers who haven’t yet filed can still claim the Recovery Rebate Credit by submitting their 2021 return by the April 15, 2025, deadline. Even those with little or no income are encouraged to file to ensure they don’t miss out on the payment.
When Were The Previous Stimulus Checks Issued?
To date, the federal government has distributed three rounds of COVID stimulus payments, totaling $814 billion. Payments were based on factors such as income, tax filing status, and the number of dependents.
- March 2020: The CARES Act provided up to $1,200 per filer and $500 per child.
- December 2020: The Consolidated Appropriations Act included payments of $600 per filer and $600 per child.
- March 2021: The American Rescue Plan Act delivered up to $1,400 per filer and $1,400 per child.
To confirm whether you received the payments mentioned above, visit the IRS website to review your tax records. You’ll need to log in using ID.me to verify your identity. For detailed information about eligibility and payment calculations, the IRS provides helpful resources online. If you think you qualify, take a moment to check your records and ensure you don’t miss out.