What it is and who qualifies

On December 23, 2024By Littum

The letter

Approximately 1 million taxpayers will receive unannounced rebate payments from the IRS in the coming weeks.
The payments will be deposited automatically and will be up to $1,400.
The payments go to those who failed to claim a recovery discount credit on their 2021 tax returns.

A small number of taxpayers will receive a special payment from the IRS in the coming weeks.

Here’s what the rebate payment is and who receives it:

What is the 2021 recovery discount credit?

The 2021 Recovery Rebate Credit was one of three COVID stimulus payments sent to households amid the pandemic.

In March 2021, eligible persons received up to $1,400 per income tax collector and $1,400 per child under the American Rescue Plan Act.

Now, the IRS has identified a very small number of taxpayers who have never claimed this credit or received less than the full amount and are sending out what they owe.

Who receives checks?

The IRS said most taxpayers eligible for the federal stimulus payments, formally known as Economic Impact Payments, have already received them, but that approx. 1 million taxpayers left the credit unclaimed.

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

How much is the payment?

Payments will vary, but the maximum amount will be $1,400 per person.

How does the money come?

The payments will automatically disappear this month and should arrive by direct deposit or check by the end of 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.

Eligible taxpayers do not need to take any action.

The source

The information in this article was obtained from The Associated Press and an FAQ page on the IRS website about the 2021 Recovery Rebate Credit. This story was reported from Detroit.

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