If you filed your 2021 tax return but did not claim the Recovery Rebate Credit, take note. The IRS recently announced that it will send a stimulus check this month to those who qualify but did not request it at the time.
The amount can be as much as $1,400 per person, depending on what you were not receiving. According to the IRS, approximately $2.4 billion will be distributed to nearly one million eligible taxpayers.
What is the Recovery Rebate Credit for which this stimulus check is being sent?
One way to think about it is as a financial lifeline that some people did not receive. During the pandemic, three rounds of stimulus checks were approved, with two in 2020 and one in 2021.
However, not everyone received the full amount to which they were entitled, which is why this check is necessary. Basically, it allows you to claim money that you did not receive on your tax return.
Who can receive this payment?
The IRS identifies taxpayers who filed a 2021 return but did not claim the credit. Perhaps you left it blank or even entered a zero in the corresponding section. If this is the case, the IRS has most likely included you in this group.
But keep in mind that if you didn’t even file your 2021 return, you still have time.
The agency reminds you that you have until April 15, 2025 to file your return and claim the credit and any other pending refunds. The best part is that you can still qualify even if you made very little or no money.
Do you need to do anything to receive the payment?
No, you do not have to lift a finger. The IRS will make the payments automatically, either through direct deposit into your bank account or by paper check. In addition, you will receive a letter confirming that the payment has been issued. So, if you receive a letter from the IRS, do not ignore it.
According to IRS Commissioner Danny Werfel, this initiative is part of their commitment to assisting taxpayers. Werfel explained: “After reviewing our internal data, we discovered that a million people were eligible for this complex credit but did not receive it.” To avoid problems and ensure that they receive their money, we are automating these payments.”
When will the payments arrive?
The agency stated that the first checks will be mailed in December, and that most taxpayers will receive their money by the end of January 2025. If you changed banks or closed the one you used on your most recent return, the IRS will resend the payment via paper check to the address on file.
If you have any doubts, review your 2021 return or consult a tax professional. It may not be a lot of money, but in difficult times, every dollar counts. Also, if you haven’t filed your return yet, don’t miss the deadline. Claiming this credit is simple and can provide you with a small financial boost. Why let something that you already have slip away?
Also See:- A Million People to Get $1,400 Stimulus Checks from the IRS This December
