In the upcoming weeks, the IRS will automatically provide special payments of up to $1,400 to about 1 million taxpayers. The funds will either be mailed as a physical check or directly deposited into the bank accounts of qualified individuals.
According to the IRS, approximately $2.4 billion will be disbursed to taxpayers who neglected to include a Recovery Rebate Credit on their 2021 tax returns. The credit was available to those who had received less than the full amount of the COVID stimulus payments or who had missed one of them. However, the IRS announced on Friday that it had found that many qualified individuals had not.
In a statement, IRS Commissioner Danny Werfel stated, “After reviewing our internal data, we discovered that one million taxpayers failed to claim this complex credit when they were truly qualified.”
Here’s more about the unforeseen funds that this taxpayer organization will shortly receive:
What s the likelihood I ll receive a check?
I apologize; it’s probably quite low. Federal stimulus funds, formerly known as Economic Impact funds, have already been disbursed to the majority of eligible taxpayers, according to the IRS.
Taxpayers who filed a 2021 for return but either left the Recovery Rebate Credit data box blank or filled it out as $0 when they were actually entitled for the credit will receive the special payouts that the IRS announced.
How will this work?
Eligible taxpayers are not required to do anything. This month, the payments will be made automatically, and by the end of January 2025, they should come via cheque or direct transfer. They will be delivered to the address the IRS has on file or to the bank account specified on the taxpayer’s 2023 return.
Although payments will differ, each person may receive up to $1,400. Details regarding eligibility and the calculation of the payment have been made available online by the IRS.
Eligible taxpayers will get separate letters from the IRS informing them of the special payment.
What if I haven t filed my 2021 tax return yet?
The money may still be available to you. However, taxpayers need to file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to IRS.
How many rounds of COVID stimulus payments were there?
The $814 billion was distributed in three stages to homes affected by the pandemic. The amounts that people received were determined by the IRS based on their income, tax filing status, and the number of qualified dependents or children they had.
The CARES Act provided up to $1,200 per income tax filer and $500 per child to qualified individuals in March 2020. In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act. Under the American Rescue Plan Act, qualified taxpayers received up to $1,400 per kid and $1,400 per income tax filer in March 2021.
By Associated Press’s Susan Haig
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