IRS sends checks to 1 million taxpayers for recovery rebate credit

On By Littum

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Eligible Arizonans and other Americans who did not claim the Recovery Rebate Credit in 2021 may get money back from the Internal Revenue Service within the next few weeks.

The IRS announced plans to issue pandemic-related payments starting this month to 1 million taxpayers who filed their 2021 returns but did not claim the credit. That could work for about 20,000 households in Arizona.

IRS data shows that many eligible taxpayers filed a return but did not claim the credit, the agency said in a news release. Payouts will be automatically made to those who qualify. These individuals can expect to receive their 2021 Recovery Rebate Credit at the end of January. Stimulus payments were authorized by Congress to help support the economy during the COVID-19 shutdowns.

Who is entitled to the stimulus payment?

Most taxpayers were eligible for stimulus payments, though generally not those who reported high incomes.

Your credit amount will be reduced by any amount that you received from the third financial impact payment at that time. It may also be reduced if your 2021 adjusted gross income was over $75,000 (single filers), $112,500 (heads of household) or $150,000 (married filing jointly). No credit is given for taxpayers whose AGI exceeded $80,000 (singles), $120,000 (heads of household), or $160,000 (joint affiliates).

The Recovery Rebate Credit was a complex and unusual provision that even the IRS has noted. More detailed answers can be viewed on the website irs.gov.

How much money is sent out?

Eligible taxpayers can expect to receive a maximum of $1,400, according to the IRS. A total of $2.4 billion will be sent to those who missed receiving the credit.

How do I receive my stimulus payment?

If you qualify, your payment will be sent automatically. You don’t need to do anything. The IRS will begin making payments in late December, with payments arriving in most cases by late January.

Eligible taxpayers will receive a separate letter notifying them of the payment.

Payments are either sent by paper check or directly deposited into the bank account listed on an eligible individual’s 2023 tax return.

What if I didn’t file my 2021 tax?

You may still be eligible to receive a stimulus check, the IRS said. However, you only have until April 15, 2025 to file the return to claim the credit and any other refund you may be owed.

Who is entitled to the special payment?

Individuals who entered $0 in the recovery discount credit field on their 2021 tax forms or left the section blank are eligible. The IRS will make this determination.