The U.S. Internal Revenue Service (IRS) announced that taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns will automatically receive a stimulus check by the end of January 2025. This decision follows an internal data review, revealing that one million eligible taxpayers overlooked claiming the credit.
The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIPs) or stimulus payments. IRS Commissioner Danny Werfel stated, “To minimize headaches, we’re making these payments automatic, meaning taxpayers won’t need to file amended returns to receive the funds.”
Eligible taxpayers will receive their payments either by direct deposit or paper check, with the payments expected to arrive by late January. The maximum payment a taxpayer can receive is $1,400, while married couples filing jointly may receive $2,800. In addition, families with dependents may qualify for an additional $1,400 per dependent.
The IRS has assured that taxpayers will be notified of the upcoming payments via separate letters, and individuals can also check their 2021 returns for any missing Recovery Rebate Credit claims.
Those who did not file a 2021 return, still have the opportunity to claim the Recovery Rebate Credit by filing before the April 15, 2025 deadline. The IRS also announced that the Economic Relief Package Direct Deposit, a separate $2,000 benefit to help with inflation, will be distributed to qualifying taxpayers in 2025.
Citizens are encouraged to visit the IRS website for further details on eligibility and the claims process.
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