The IRS announced Friday that it will issue $2.4 billion in “special payments” to 1 million people as part of an effort to ensure that Americans who did not receive all of their federal stimulus checks during the pandemic receive the funds in their bank accounts.
The payouts will be tailored to each individual, with a maximum of $1,400 per recipient, according to the agency.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” the IRS Commissioner, Danny Werfel, said in a release.
Who will get a payment from the IRS?
The tax agency said it is disbursing the payments after evaluating internal data that revealed many persons filed tax returns but did not claim the “recovery rebate credit” in 2021.
That credit was intended for persons who did not receive all or portion of the stimulus payments that were given during the pandemic. Three stimulus payments were authorized by lawmakers, two of which will be given in 2020 and the third in 2021.
Most eligible taxpayers have already received stimulus payments, either directly or through the recovery rebate credit.
Do you need to apply for the IRS payment?
No. The IRS said the payouts will be sent automatically to around 1 million persons who submitted tax returns and qualified for the recovery rebate credit but did not claim it. The agency will notify beneficiaries via letter that they will receive their money.
When will the IRS send the payments?
The tax department stated that the cheques will be mailed in December, with the majority of the payments arriving by late January 2025.
The money will be either automatically put into the recipient’s bank account or mailed as a printed check.
