One million taxpayers to get up to $1,400 from IRS: NPR

Internal Revenue Service (IRS) headquarters in Washington.

J. David Ake/AP

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J. David Ake/AP

About 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the coming weeks. The money is deposited directly into eligible people’s bank accounts or sent by mail with a paper check.

The IRS said it is doling out about $2.4 billion to taxpayers who failed to claim a recovery discount credit on their 2021 tax returns. People who missed one of the COVID stimulus payments or had received less than the full amount could claim the credit. But the IRS said Friday it discovered many eligible taxpayers had not done so.

“When we looked 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.

Here’s more about the cash windfall this group of taxpayers will soon receive:

What is the likelihood that I will receive a check?

Sorry, that’s probably pretty low. The IRS said most taxpayers eligible for the federal stimulus payments, formally known as Economic Impact Payments, have already received them.

The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the recovery rebate credit data field blank or entered it as $0 when they were actually eligible for the credit.

How will this work?

Eligible taxpayers do not need to take any action. The payments will automatically disappear this month and should arrive by direct deposit or check in late January 2025. They will be sent to the bank account listed on the taxpayer’s 2023 return or to the address on file with the IRS.

Payments will vary, but the maximum amount will be $1,400 per person. The IRS has published information online about eligibility and how the payment was calculated.

The IRS plans to send separate letters to eligible taxpayers notifying them of the special payment.

What if I haven’t filed my 2021 tax return yet?

You may still be able to receive the money. However, taxpayers must file a tax return and claim the recovery discount credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to the IRS.

How many rounds of COVID stimulus payments were there?

There were three rounds of payments to households affected by the pandemic, totaling $814 billion. The IRS based the amounts taxpayers received on their income, tax filing status, and the number of children or qualifying dependents.

In March 2020, eligible individuals received up to $1,200 per income tax registrar and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax registrar and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax collector and $1,400 per child under the American Rescue Plan Act.