Are you one of the million taxpayers who could be in for a surprise payment from the IRS? This unexpected cash is part of an effort by the IRS to distribute funds to those who missed claiming the Recovery Rebate Credit on their 2021 tax returns. If you think you might be eligible for this special payment, here’s what you need to know:
- The IRS is distributing approximately $2.4 billion to taxpayers who overlooked claiming the Recovery Rebate Credit.
- This group of taxpayers could receive up to $1,400 in special payments.
- If you filed your 2021 tax return and left the Recovery Rebate Credit field blank or filled it out as $0 when you were actually eligible, you might be in line for this payment.
- Automatic payments will be made this month, arriving by direct deposit or check by late January 2025.
- And if you haven’t filed your 2021 tax return yet, don’t worry – you still may be eligible as long as you file by April 15, 2025.
While chances of receiving this payment are low for most taxpayers, it’s crucial to understand the background of the stimulus payments and how they were distributed:
- In total, there were three rounds of COVID stimulus payments, amounting to $814 billion in relief.
- The IRS based payment amounts on factors such as income, tax filing status, and the number of children or qualifying dependents.
- Under various acts – the CARES Act, the Consolidated Appropriations Act, and the American Rescue Plan Act – eligible individuals received differing amounts.
- In March 2020, up to $1,200 per income tax filer and $500 per child were distributed.
- In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child.
- In March 2021, up to $1,400 per income tax filer and $1,400 per child were given out.
Stay informed, check your eligibility, and ensure you don’t miss out on any potential payments from the IRS. Your money could be on its way sooner than you think!
