The IRS has announced a plan to send $2.4 billion in special payments to around 1 million Americans who missed out on their federal stimulus checks during the pandemic.
This initiative aims to ensure that all eligible individuals receive the financial relief they are entitled to without having to file amended tax returns.
Here’s everything you need to know about the process, eligibility, and what to expect.
What Are These Payments?
The IRS is issuing payments of up to $1,400 per person as part of the “special payments” program.
These payments are specifically for individuals who missed out on stimulus checks, also referred to as recovery rebate credits, during the COVID-19 pandemic.
A total of three rounds of stimulus payments were approved, two in 2020 and one in 2021.
Who Is Eligible for the Payment?
The payments will go to individuals who:
- Filed tax returns in 2021.
- Qualified for the recovery rebate credit but did not claim it on their tax returns.
- Did not receive some or all of the stimulus payments during the pandemic.
The IRS identified eligible recipients through internal data, eliminating the need for taxpayers to apply or file an amended return.
Do You Need to Apply?
No application is required. The IRS is making the process automatic to reduce hassle for taxpayers.
Once the IRS determines eligibility, recipients will be notified via letter about the forthcoming payments.
When Will the Payments Be Sent?
The IRS stated that these payments will begin in December 2024. Most recipients can expect to receive their money by late January 2025.
The payments will either be deposited directly into bank accounts or sent as physical checks.
How Will the Payments Be Delivered?
Eligible recipients will receive their payments either:
- Direct Deposit: Money will be transferred directly to the bank account linked with the individual’s tax return.
- Paper Check: For those without linked bank accounts, a check will be mailed to their registered address.
FAQs
1. How much will I receive from the IRS?
The maximum payment is $1,400 per person. The exact amount depends on your eligibility and prior payments received.
2. Do I need to file any paperwork to claim the payment?
No. The IRS will automatically send the payment to eligible individuals, so no additional action is needed.
3. What is the recovery rebate credit?
This is a tax credit for people who did not receive their full stimulus payments during the pandemic. The IRS is now sending payments to those who missed out.
4. How will I know if I qualify?
The IRS will send a letter to notify you if you qualify for the payment.
5. What should I do if I don’t receive my payment by February 2025?
If you believe you qualify but have not received your payment, contact the IRS directly for assistance.
