The IRS announces stimulus payments: Who will receive this benefit?

IRS Announces up to $1,400 in Automatic Payments.

Who Qualifies for the Recovery Rebate Credit?

Checks to Arrive Before the End of January.

The Internal Revenue Service (IRS) is sending approximately $2.4 billion in stimulus payments.

This is for taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.

These payments, of up to $1,400 per person, will automatically reach about one million taxpayers before the end of January.

The news comes at a time of tension due to rising prices in the country.

IRS ANNOUNCES AUTOMATIC PAYMENTS

IRS Announces Up to $1,400 in Automatic Payments – Photo: Shutterstock

The Recovery Rebate Credit is a refundable benefit for individuals who did not receive Economic Impact Payments.

Also known as stimulus checks, during 2020 and 2021.

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According to IRS Commissioner Danny Werfel, the agency identified taxpayers who failed to claim this credit, despite being eligible, during its internal data review.

“To minimize headaches, we are making these payments automatic. There will be no need to file an amended return,” Werfel emphasized.

Who Is Eligible for the IRS Automatic Payments?

Eligible taxpayers are those who filed a 2021 tax return.

But either left the Recovery Rebate Credit field blank or filled it out incorrectly.

The payment amounts will be calculated based on eligibility criteria from the three previous rounds of stimulus payments.

In 2021, payments included $1,400 per filer and for each eligible dependent under the American Rescue Plan Act.

What to Do If You Haven’t Filed Your 2021 Return?

If you haven’t yet filed your return, you can do so until April 15, 2025. Even if your income was minimal or nonexistent, you may still qualify for the credit.

The IRS will send letters notifying eligible beneficiaries.

Payments will be made via direct deposit or check, based on the information provided in your most recent tax return.

Since the beginning of the pandemic, the IRS has distributed a total of $814 billion across three rounds of payments.

Details of the Three Previous Stimulus Rounds

These payments were based on factors such as taxpayer income, filing status, and the number of dependents:

First Round (March 2020): Up to $1,200 per filer and $500 per child under the CARES Act.

Second Round (December 2020): Up to $600 per filer and $600 per child under the Consolidated Appropriations Act.

Third Round (March 2021): Up to $1,400 per filer and $1,400 per dependent under the American Rescue Plan Act.

*WITH INFORMATION FROM AP.

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