Around one million taxpaying Americans who failed to claim a previously available rebate credit are set to receive a payment of upwards of $1,400 from the Internal Revenue Service.
Around $2.4 billion will be distributed over the next few weeks to taxpayers who did not claim but were eligible for a Recovery Rebate Credit on their 2021 tax returns. The rebate was related to individuals who missed one of the COVID stimulus payments or who did not receive their full, eligible amount.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. 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,” IRS Commissioner Danny Werfel said in a December 20 statement.
The IRS says eligible individuals who filed a 2021 tax return but did not provide details for the Recovery Rebate Credit, or those who indicated it was $0, should expect to receive a payment. Those affected do not have to take any action, with payments slated to automatically be deposited to the bank account or delivered to the address listed on the taxpayer’s 2023 return by late January 2025.
While the payments will vary, the maximum amount anyone should expect is $1,400.
COVID-era stimulus payments were wracked with controversy. In 2022, The Dallas Express reported that hundreds of millions of payments were sent to federal prisoners. Even the Boston Marathon bomber obtained a $1,400 stimulus check, according to Rep. Ted Budd (R-NC).
In total, the Federal government delivered three rounds of COVID stimulus payments totaling $814 billion.
“The IRS continues to work hard to make improvements and help taxpayers,” said Werfel in the statement.