(NewsNation) — About one million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the weeks ahead.
The payments are for those who didn't claim a Recovery Rebate Credit on their 2021 tax returns. That credit was available to people who missed one of the COVID stimulus payments or didn't receive the full amount.
"Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible," IRS Commissioner Danny Werfel said in a statement.
Eligible taxpayers don't have to do anything. The payment will be directly deposited to the bank account listed on their 2023 tax return or sent as a check in the mail. The money should arrive by late January 2025.
The IRS said the payments vary depending on several factors, but the maximum amount is $1,400 per individual.
Not likely. Most taxpayers have already received their federal stimulus checks, formally known as Economic Impact Payments (EIP).
The special payments are for those who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank, or filled out as $0 when they were actually eligible.
The estimated amount of payments going out is about $2.4 billion, the IRS said.
Eligible taxpayers should receive their payment by late January 2025.
The payment will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address on file.
The IRS is also sending letters to eligible taxpayers to notify them of the payment.
For questions regarding eligibility and how the payment was calculated, the IRS has more information here.
You could still be eligible for a refund. To qualify, you'll need to file a tax return and claim the Recovery Rebate Credit by April 15, 2025.
"Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent," the IRS said.
The Associated Press contributed to this report.
