Same days ago the IRS announced the special payments for 1 million taxpayers who haven’t claimed their 2021 Recovery Rebate Credit under the Economic Impact Payment. The IRS is making an effort to offer stimulus checks to the recipients who may have missed the payments earlier.
IRS will provide stimulus checks to the eligible US citizens who were eligible to receive the Economic Impact payment but didn’t receive the check. With this announcement, the agency is trying to clear the unclaimed stimulus check, so if you think you may be eligible to receive the stimulus check you should check the details here.
IRS Stimulus check
The IRS has initiated the Recovery Rebate Credit for people who did not receive the stimulus payments under the Economic Impact Payment. The federal government has announced stimulus payments during the COVID-19 economic crisis to support the people.
Under the EIP, the government released the three stimulus checks, so anyone who has not received one or more checks can claim the payment through the Recovery Rebate Credit claim on their 2021 federal tax return. During the latest review, the agency discovered around a million taxpayers have not claimed the Recovery rebate credit on 2021 tax returns.
The agency is trying to offer the entitled payment to the taxpayers who have not claimed it through this announced special payment. According to the announcement, the government will release the payment in December and some eligible taxpayers can expect the payment by the end of January 2025.
How much can you expect in the IRS Stimulus check?
According to the IRS announcement made on 20 Dec 2024, eligible taxpayers will receive the stimulus check with a payout that can vary depending on many factors, however, the maximum payment is up to $1400. The agency will release a total of $2.4 billion amount to settle the unclaimed 2021 Recovery Rebate Credit.
Taxpayers can calculate their Stimulus check amount based on the 2021 Recovery Rebate Credit amount they were eligible to receive if they would have claimed the credit. To know your amount you can check the IRS notice 1444-C, which you may have received or you can check your individual online account.
You can look for 6475 letters released in 2022 to inform you about your EIP and additional top-ups under the credit. The payment of recovery rebate credit may be different for the recipients depending on their family size, income, or family needs, so it’s essential to check your 2021 Recovery Rebate Credit.
Who will receive the announced IRS stimulus check?
According to the agency, taxpayers who meet the following eligibility conditions will receive a Stimulus check worth up to $14,00:
- The US residents who qualify for the 2021 Recovery Rebate Credit but did not claim the credit with their 2021 federal income tax returns and filled out the credit amount of $0.
- The Individuals who have valid Social Security Number and you are the US resident alien or citizen in 2021.
- The income limit for the Recovery Rebate Credit on 2021 tax information will be reduced if it goes above the income limit, that is, $112,500 for individuals or heads of households, $150,000 for married couples filing returns jointly or widow or widower, and $75,000 for other taxpayers.
According to the latest IRS notice, the agency will release a notice to the taxpayers with unclaimed 2021 Recovery Rebate Credit who will be entitled to receive the IRS Stimulus check.
How does the 2021 Recovery Rebate Credit work?
Taxpayers wondering about the announced IRS stimulus check should understand the Recovery Rebate Credit to get an idea of the upcoming special payments. According to the 2021 Recovery Rebate credit rules, the credit amount was based on many factors, such as:
- The individuals whose AGI is above the limit set by the agency will not receive the credits, such as $160,000 for married couples, $120,000 for head of household, and $80,000 for others.
- The individual recipients will receive credit up to $1400 and married couples who have filed jointly will receive $2,800.
- The eligible recipients who have dependents with valid SSNs may receive the additional payment of $1400 for each dependent.
Do you need to claim the IRS stimulus check?
According to the IRS, the payment will reach the recipients automatically through direct deposit or paper checks based on their prior year’s tax return information. So, the eligible 2021 Recovery Rebate Credit recipients can not have to do anything to receive the IRS stimulus check.
Taxpayers who have changed their bank account or mailing address if they have opted out of paper checks in their federal tax returns for tax refunds should immediately inform the agency to receive the upcoming stimulus check timely on an accurate address or bank account.
Taxpayers need to understand the automatic payment will be disbursed to the taxpayers who have filed the 2021 tax return but never claimed the Recovery Rebate Credit, so the question arises for people who haven’t filed the 2021 tax return. The US resident who was eligible for the Recovery Rebate Credit but did not file their 2021 tax return will need to file their 2021 tax return in the next 2025 tax season otherwise they will miss their payment.
The IRS has made an effort to ensure every taxpayer who was eligible to receive the 2021 Recovery Rebate Credit but did not claim it at that time can receive their deserved payment by the end of Jan 2025 and start the new year with some extra cash in their pocket.