IRS to Distribute Stimulus Checks to Millions- Find Out How to Claim Yours

The Internal Revenue Service (IRS) is distributing billions of dollars in stimulus checks this month, providing financial relief to an estimated one million Americans.

These payments are part of the ongoing effort to assist individuals who missed out on prior Economic Impact Payments (EIP) during the COVID-19 pandemic.

Why Are These Payments Significant?

The IRS is targeting individuals who previously did not receive their rightful stimulus payments.

These payments, now referred to as Recovery Rebate Credit (RRC), are being sent to eligible taxpayers who either did not claim the payments or entered incorrect information in their 2021 tax returns.

This effort follows an IRS review that identified a significant number of unclaimed credits.

Key Details About the Payments

What Are Recovery Rebate Credits?

The Recovery Rebate Credit is a federal stimulus payment issued to taxpayers who missed claiming their Economic Impact Payments on their 2021 tax returns. This initiative aims to rectify errors or omissions made during the filing process.

Payment Amount

The maximum payment for eligible individuals is $1,400 per person, though the exact amount may vary based on specific factors. The total estimated payout from these payments is a staggering $2.4 billion.

Eligibility Requirements

To qualify for these payments, individuals must meet the following criteria:

• Filed a 2021 tax return but did not claim the Recovery Rebate Credit or entered $0 in the designated field.
• Were otherwise eligible for the credit based on income and filing status.

If you have yet to file your 2021 tax return, there is still an opportunity to claim the credit by filing before April 15, 2025.

How to Receive the Stimulus Payment

Automatic Processing

Eligible taxpayers who have already filed their 2021 tax returns will automatically receive the payments. These will either be directly deposited into their bank accounts or sent as paper checks.

Notification

Recipients will also receive a separate letter from the IRS confirming the payment details.

For Late Filers

If you still need to file your 2021 tax return, you can do so before the deadline to claim your payment. Note that filing is mandatory to qualify for the rebate.

Expected Timeline for Payments

The IRS began issuing these payments in late December 2024. Most recipients should expect to receive their checks by late January 2025. For those who file their 2021 returns later, payments will be issued in the weeks following acceptance of their returns.

Statement from the IRS Commissioner

Danny Werfel, IRS Commissioner, expressed the organization’s commitment to ensuring taxpayers receive the funds they are entitled to. In a December 2024 statement, he emphasized:

“The IRS continues to work hard to make improvements and help taxpayers. 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.”

By automating these payments, the IRS has eliminated the need for taxpayers to file amended returns, reducing inconvenience for eligible individuals.

The IRS’s latest round of stimulus payments serves as a significant financial lifeline for one million Americans who previously missed out on COVID-era Economic Impact Payments.

By automating the distribution process and encouraging late filers to claim their credits, the IRS ensures that eligible taxpayers receive their rightful funds. If you’re still waiting to file your 2021 return, now is the time to act and secure this important financial benefit.

FAQs

What is the maximum amount I can receive from the Recovery Rebate Credit?

The maximum payment is $1,400 per person, though the exact amount depends on individual circumstances such as income and filing status.

Do I need to take any action to receive the payment?

No action is required if you’ve already filed your 2021 tax return. Payments are automatic. However, if you haven’t filed, you must do so before the April 15, 2025 deadline.

How will I know if I qualify?

Eligible taxpayers are those who filed a 2021 tax return but did not claim the Recovery Rebate Credit or entered $0 in the designated field despite being eligible.