In case you have not filed your 2021 tax returns you could be missing out on a COVID stimulus payment. Taxpayers who have not filed 2021 tax returns who could also be eligible for the Recovery Rebate Credit must file it by April 15, 2025 to say the credit.
Earlier this 12 months, the IRS announced that it’s distributing about $2.4 billion to taxpayers who didn’t receive their COVID stimulus payments. The agency said it’s distributing these payments to taxpayers who failed to say a Recovery Rebate Credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for people who didn’t receive a number of Economic Impact Payments (EIP), also referred to as stimulus payments.
“Taking a look at our internal data, we realized that a million taxpayers missed claiming this complex credit once they were actually eligible,” IRS Commissioner Danny Werfel said in a press release.
Here’s what it’s essential to know:
Who’s eligible to receive a check?
The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the information field for the Recovery Rebate Credit blank or they filled it out as $0 once they were actually eligible for the credit.
How much money will eligible taxpayers receive?
Payments will vary but the utmost amount can be $1,400 per individual. In total, the IRS can be distributing about $2.4 billion to taxpayers who failed to say a Recovery Rebate Credit on their 2021 tax returns.
The IRS has posted information online about eligibility and the way the payment was calculated.
Why is the IRS sending out stimulus checks?
The Recovery Rebate Credit is a refundable credit for people who didn’t receive the Economic Impact Payments, also referred to as stimulus payments, during 2020 and 2021. A refundable tax credit is a credit you may get as a refund even should you don’t owe any tax.
The IRS announced this initiative after reviewing its internal data and finding that many eligible taxpayers who filed a 2021 tax return didn’t claim the credit.
“To attenuate headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people is not going to be required to undergo the extensive technique of filing an amended return to receive it,” said Werfel.
If I qualify for a stimulus payment, how will I receive it?
In case you qualify for the Recovery Rebate Credit you don’t must take any motion. The IRS plans sent letters to eligible taxpayers notifying them of the special payment. The payments went out mechanically and will’ve arrived by direct deposit or check by late January. They’ll are being sent to the checking account listed on the taxpayer’s 2023 return or to the address IRS has on file.