Dec 22, 2024, 4:49 PM
Dec 22, 2024, 4:48 PM

Millions of taxpayers set to receive $1,400 IRS payments as news breaks

Highlights
  • The IRS is distributing approximately $2.4 billion to 1 million taxpayers who overlooked claiming the Recovery Rebate Credit.
  • This financial assistance is for individuals who filed 2021 tax returns but left the credit blank or marked it as $0.
  • With automatic payments underway, eligible taxpayers can expect to receive funds without needing to take any action.
Story

In the United States, the Internal Revenue Service (IRS) has announced that approximately 1 million taxpayers will receive automatic payments of up to $1,400. These payments are intended for individuals who filed a 2021 tax return but did not claim their Recovery Rebate Credit, which is a significant component of the Economic Impact Payments provided during the COVID-19 pandemic. The total amount being distributed by the IRS is approximately $2.4 billion, aimed at helping those who missed or received less than the full amount in previous stimulus payments. This situation arose when the IRS identified a lapse in claims from eligible taxpayers by evaluating its internal data. The special payments are slated to be issued in the coming weeks, with the IRS projected to distribute them through direct deposits or paper checks to the bank accounts and addresses listed on taxpayers' 2023 returns. Eligible individuals will not need to take any further action to receive this unexpected cash. The IRS has recognized that many people either left the Recovery Rebate Credit box blank on their returns or incorrectly filled it in with $0, both of which resulted in them missing out on financial support during a challenging time. The timing of these payments is crucial, as some taxpayers have faced financial difficulties due to the ongoing repercussions of the pandemic. According to IRS Commissioner Danny Werfel, the initiative to rectify this oversight signifies an understanding of the financial strain many Americans continue to experience. Moreover, the IRS emphasizes that any taxpayers who have not yet filed their 2021 returns have an opportunity to still claim the Recovery Rebate Credit, even if they have little to no income. The deadline for filing these returns to be eligible for the credit and payments is April 15, 2025. This provision allows for broader access to financial relief, encouraging individuals to report even minimal income to claim potential benefits. The IRS has committed to communicating directly with eligible taxpayers about their upcoming payments and providing information regarding their eligibility criteria.

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