One million taxpayers to get IRS stimulus payments. See if you qualify.

On By Littum

A check from the Internal Revenue Service should make the end of the holiday season a little greener for a million taxpayers.

About $2.4 billion in stimulus checks will be distributed to some taxpayers in the coming weeks, the Internal Revenue Service announced Friday.

Internal data reviewed by the IRS showed that many people who filed a tax return in 2021 failed to claim Recovery discount credit, asks the IRS to issue the batch of “special” automatic payments.

“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 Danney Werfel said in a statement. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people won’t be required to go through the extensive process of submitting an amended return to receive it.”

All eligible taxpayers will receive payments in late January, which are either automatically deposited directly into their account or sent by paper check in the mail. No action by eligible recipients is necessary to receive the large change, according to the IRS.

What is the Recovery Discount Credit?

The Recovery Rebate Credit is a “refundable credit for individuals who have not received one or more economic impact payments, also known as stimulus payments,” according to IRS. Only those who failed to claim RRC for tax year 2021 or have not yet filed for 2021 are eligible.

The IRS has previously issued three rounds of stimulus payments during the COVID-19 pandemic, meaning that most, if not all eligible individuals have already received stimulus payments and will not be eligible to claim the RRC.

Who is eligible to receive stimulus payments?

Most taxpayers eligible for stimulus checks have received these payments or the recovery discount credit. However, those who filed a tax return in 2021, and even those who have not yet filed for 2021, may be eligible.

“Special” payments will only be sent to qualified taxpayers who qualify for the credit. The IRS has defined “qualified taxpayers” as those who filed a 2021 tax return but left out the data field for the recovery rebate credit or entered $0 when the person was eligible to receive the credit.

Taxpayers who have not yet filed taxes for 2021 can receive a refund if they file and claim the recovery rebate credit by April 15, 2025, even if income from a job, business, or other source was minimal or nonexistent.

How much money will I receive?

The amount issued for a payment will vary by several factors, but the maximum payment is up to $1,400 per person. For additional information or questions about how the payment was calculated or how eligibility was determined, visit the IRS website.

The payment will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address of record, according to the IRS.