For those who may have overlooked filing their 2021 tax returns, an important announcement has come from the IRS. There is a chance you might have missed out on a COVID stimulus payment if you didn’t file your tax returns and may be eligible for the Recovery Rebate Credit. To claim this credit, taxpayers who haven’t filed their 2021 tax returns need to do so by April 15, 2025.
The IRS recently unveiled that it is distributing approximately $2.4 billion to taxpayers who missed out on their COVID stimulus payments. These payments are specifically for individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns. IRS Commissioner Danny Werfel commented, "Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible."
Here’s a breakdown of what you need to know:
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Who is eligible to receive a check?
- The special payments are being sent to taxpayers who filed their 2021 tax return but left the data field for the Recovery Rebate Credit blank or incorrectly filled it out as $0 even though they were actually eligible for the credit.
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How much money will eligible taxpayers receive?
- The payments will vary, but eligible individuals can receive up to $1,400 each. In total, the IRS is dispersing about $2.4 billion to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.
- Why is the IRS sending out stimulus checks?
- The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive Economic Impact Payments (EIP), also known as stimulus payments, in 2020 and 2021. The IRS initiated this program after identifying many eligible taxpayers who failed to claim this credit on their 2021 tax returns.
Eligible recipients donβt need to take any action to receive the Recovery Rebate Credit. The IRS will automatically send out letters to notify eligible taxpayers of their special payment, which will be dispersed via direct deposit or check by late January. This alleviates the need for filing an amended return to receive the money.
Additionally, even if you haven’t filed your 2021 tax return yet, there is still an opportunity to receive the stimulus payment. Taxpayers must file a tax return and claim the Recovery Rebate Credit by the deadline of April 15, 2025, regardless of their income.
Finally, there were three rounds of COVID stimulus payments distributed by the IRS, totaling $814 billion. The amounts varied based on income, tax filing status, and the number of children or dependents you had. The rounds took place in March 2020, December 2020, and March 2021 under different Acts to assist households impacted by the pandemic.
It’s crucial for all eligible taxpayers to be vigilant, check their eligibility, and ensure they receive the financial aid they are entitled to by following the guidelines provided by the IRS. Don’t miss out on receiving your stimulus payment if you’re eligible. Reach out to the IRS for further assistance or clarification.
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