SELECT Americans are set to receive a payment of up to $1,400 thanks to a new IRS effort to help taxpayers.
The government agency will issue around $2.4 billion in automatic payments to those who missed out on prior stimulus checks.
The Internal Revenue Service announced plans in late December last year to issue automatic payments to eligible Americans who failed to claim the Recovery Rebate Credit on their 2021 tax returns.
Americans who have yet to file their 2021 tax returns may be eligible to receive the payment as well.
The Recovery Rebate Credit is a refundable credit for those who didn’t receive one or more Economic Impact Payments, or stimulus payments, issued to assist Americans during the pandemic.
The IRS shared its plans for the automatic payments after internal data revealed that many eligible taxpayers had filed their 2021 tax returns but left the Recovery Rebate Credit field blank or filled out a $0.
More on stimulus checks
STIMULUS checks have been landing in the bank accounts of Americans since the beginning of the coronavirus crisis.
“The IRS continues to work hard to make improvements and help taxpayers,” said IRS Commissioner Danny Werfel.
“These payments are an example of 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 actually 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.”
HOW TO SCORE THE CASH
Those who did not claim any portion of the Recovery Rebate Credit on their 2021 tax return do not need to take any action to receive the automatic payments, which were sent out in December.
The payments should arrive in most cases by the end of this month as a direct deposit or paper check.
On the other hand, Americans who have not yet filed their 2021 tax returns may qualify for a refund if they file and claim the Recovery Rebate Credit by April 15, 2025.
They must file a tax return to claim the credit, even if their income was minimal or non-existent.
Payment amounts for the refund will vary, but the most an eligible taxpayer can receive is $1,400.
The IRS estimated that payments will be handed out to around one million Americans, totaling $2.4 billion.
Eligible Americans will also receive a separate letter informing them of the payment.
Payments will be sent to the bank account listed on the taxpayer’s 2023 tax return.
If the taxpayer closed their bank account since filing their 2023 tax return, taxpayers do not need to take any action.
The bank will return the payment to the IRS and the refund will be reissued to the listed address.
Check out these other IRS stories by The U.S. Sun.
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