The IRS is distributing about $2.4 billion to taxpayers who didn't receive their COVID stimulus payments. By the end of January, approximately 1 million taxpayers will receive special payments of up to $1,400 from the IRS.
The IRS said it's distributing these payments to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.
One taxpayer who benefitted was Ginny Bultman, 61, from Colorado. Bultman and her husband didn’t receive a stimulus payment back in 2021. After reading about the latest IRS payments, she realized she qualified for the Recovery Rebate Credit. A day later, she got her check in the mail.
“It was a pleasant surprise,” said Bultman, who owns a locksmith business in her town.
The Bultman family received three late stimulus payments, including one for their underaged son, which amounted to $4,200 at the end of December.
Here’s what you need to know about the IRS payments.
Who is 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 data field for the Recovery Rebate Credit blank or they filled it out as $0 when they were actually eligible for the credit.
How much money will eligible taxpayers receive?
Payments will vary but the maximum amount will be $1,400 per individual. In total, the IRS will be distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns.
The IRS has posted information online about eligibility and how the payment was calculated.
Why is the IRS sending out stimulus checks?
The Recovery Rebate Credit is a refundable credit for individuals who didn't receive the Economic Impact Payments, also known as stimulus payments, during 2020 and 2021.
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 minimize headaches and get this money to eligible taxpayers, we're making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” said Werfel.
If I qualify for a stimulus payment, how will I receive it?