WASHINGTON, D.C. — The Internal Revenue Service (IRS) has announced plans to distribute automatic payments to certain taxpayers eligible for the 2021 Recovery Rebate Credit, aiming to assist those who did not claim the credit on their tax returns. The payments, set to begin this month, are expected to reach most recipients by late January 2025.
The Recovery Rebate Credit is designed for individuals who missed receiving one or more Economic Impact Payments (EIPs), also known as stimulus checks. Following a review of internal records, the IRS identified over one million taxpayers who filed 2021 returns but did not claim the credit despite being eligible. These automatic payments will be issued without requiring additional action from recipients.
According to IRS Commissioner Danny Werfel, “These payments are an example of our commitment to minimize burden and ensure eligible taxpayers receive the funds they’re entitled to.”
Eligible individuals may receive up to $1,400 per person, based on various factors such as income and filing status. The IRS estimates the total amount issued will reach $2.4 billion. Payments will be deposited into the bank account provided on taxpayers’ 2023 returns or mailed as checks to the address on file. Taxpayers will also receive an IRS letter confirming these payments.
For individuals who have not yet filed a 2021 return, the IRS urges them to do so by April 15, 2025, to claim the credit and any other potential refunds. Even those with minimal or no income are encouraged to file. The agency emphasizes that the Recovery Rebate Credit does not impact eligibility for federal assistance programs, including SNAP and SSI.
This effort is part of the IRS’s broader commitment to ensuring taxpayer support and financial equity. Further details on the credit and eligibility are available through IRS resources.
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