The Internal Revenue Service (IRS) has started giving out stimulus tax credits worth about $2.4 billion that have not been claimed yet. About a million taxpayers who met the requirements but did not ask for the credit during the fiscal year of 2021 will benefit from this payment.
Each beneficiary could get up to $1,400 automatically, either through an electronic transfer to bank accounts that have already been set up or by a paper check sent to the address that was given. In order to get these funds, taxpayers will not have to do anything else, according to the IRS.
Automatic distributions of the stimulus checks: How will the IRS send your money?
Danny Werfel, Commissioner of the IRS, said that this process is meant to make it easier to get tax breaks. Werfel said in a statement, “We found that one million taxpayers who were eligible did not take advantage of this important credit.” “To make things easier, we are setting up automatic payments so that people do not have to file amended returns.”
These funds are the same as the three rounds of Economic Impact Payments that were given out during the COVID-19 pandemic.
In the third round, which happened in 2021, it was found that many taxpayers did not claim the Recovery Refund Credit. This is why the automatic refund program was put in place.
Eligibility criteria based on tax data
People who left the Recovery Rebate Credit line blank or recorded a $0 amount on their 2021 federal returns will get money sent to them automatically. The bank information that was on their most recent tax returns, for the year 2023, will be used to make deposits.
If the given bank account is not still open, the bank will send the money back to the IRS. In these situations, a paper check will be made automatically and sent by mail to the last registered address.
This makes sure that the people who are supposed to get the credits get them without having to do anything else.
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Requirements for those who did not declare taxes
The IRS also said that people who did not file a tax return in 2021 but think they qualify for the credit can get it by filing their return before April 15, 2022. After this step, applicants will be able to get the money that goes with the Recovery Rebate Credit.
The IRS suggests that you check out its website or talk to a tax expert for more information about the process. The goal of this measure is to make sure that all taxpayers who are eligible get the benefits they are entitled to quickly and easily.
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