The IRS is set to distribute $2.4 billion in automatic payments to one million Americans who missed out on the 2021 federal stimulus benefits.
IRS Announces Automatic Payments for Missed Stimulus Checks
The Internal Revenue Service (IRS) has unveiled plans to distribute $2.4 billion in automatic payments to approximately one million Americans who were inadvertently left out of the 2021 federal stimulus benefits. These payments, explicitly targeting those eligible for the 2021 Recovery Rebate Credit, aim to provide financial relief to individuals who did not receive their Economic Impact Payments (EIP) or stimulus checks during the height of the COVID-19 pandemic.
IRS sending up to $1,400 to 1 million people who never received their stimulus checks https://t.co/MnhEE7gIkg
— WLOX (@WLOX) December 21, 2024
The IRS’s decision to issue these “special payments” comes as a response to the ongoing economic challenges many Americans face, particularly as inflation continues to impact household budgets. Eligible individuals can expect to receive up to $1,400 automatically without needing to amend their previous tax filings or take additional action.
The IRS said Friday it is sending a total of $2.4 billion in "special payments" to 1 million people, an effort to ensure that Americans who didn't receive all of their federal stimulus checks during the pandemic will get the money in their bank accounts. https://t.co/Bkq9gMzsBs
— barry @chillybt.bsky.social (@chillybt) December 21, 2024
IRS sending up to $1,400 to 1 million people who never received their stimulus checks https://t.co/MnhEE7gIkg
— WLOX (@WLOX) December 21, 2024
Simplifying Access to Critical Funds
IRS Commissioner Danny Werfel emphasized the agency’s commitment to assisting taxpayers by making these payments automatic. This approach aims to minimize complications and ensure timely support for those most in need.
“The IRS continues to work hard to make improvements and help taxpayers. These payments exemplify our commitment to go the extra mile for taxpayers. Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were eligible. 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.” IRS Commissioner Danny Werfel.
The payments are specifically intended for individuals who left the Recovery Rebate Credit field blank or filled it as $0 on their 2021 tax returns. Eligible taxpayers can expect to receive their direct deposit or paper check payments by late January 2025.
Important Details for Recipients
The IRS has outlined several key points for those expecting to receive these payments:
1. Eligible individuals do not need to take any action; payments will be automatically deposited or sent by check.
2. An IRS letter will notify taxpayers of the payment.
3. If a bank account is closed, the payment will be reissued to the address of record.
4. The Recovery Rebate Credit does not count as income for federal benefits eligibility.
5. Taxpayers who haven’t filed their 2021 tax returns have until April 15, 2025, to claim the credit.
“The estimated payments going out will total about $2.4 billion.” – Officials.
It’s important to note that these payments are part of a more significant effort to ensure all eligible Americans receive their intended stimulus benefits. The COVID-19 pandemic prompted three rounds of stimulus payments totaling $814 billion, distributed under various acts, including the CARES Act, Consolidated Appropriations Act, and American Rescue Plan Act.
Economic Context and Impact
While the U.S. economy has shown resilience post-pandemic, many Americans face high prices for essentials like food and housing. The timing of these payments coincides with recent increases in inflation, making them a welcome relief for eligible taxpayers.
As the 2025 tax filing season approaches, the IRS has stated it will continue to inform taxpayers about available credits and deductions, including the Earned Income Tax Credit. This proactive approach ensures that all eligible individuals and families receive the financial support they are entitled to under current tax laws.
For those who may still be eligible for the 2021 Recovery Rebate Credit but have not yet filed their 2021 tax returns, the IRS encourages action before the April 15, 2025 deadline. This initiative underscores the government’s ongoing efforts to provide financial assistance to Americans as the nation continues its economic recovery from the impacts of the COVID-19 pandemic.
Sources:
https://feedpress.me/link/20202/16926079/2004775