If you filed your 2021 tax return but did not claim the Recovery Rebate Credit, pay attention. The IRS has just announced that it will send a stimulus check this month to those who qualify and did not request this benefit at the time.
The amount can be up to $1,400 per person, but it will depend on what you were missing out on receiving. According to the IRS, about $2.4 billion will be distributed to nearly one million eligible taxpayers.
What is the Recovery Rebate Credit for which this stimulus check is being sent?
One way to look at it is as a financial lifeline that some people missed out on collecting. During the pandemic, three rounds of stimulus checks were approved: two in 2020 and one more in 2021. However, not everyone received the full amount they could have been entitled to, and this is where this check comes in. Basically, it allows you to claim the money you didn’t receive through your tax return.
Who can receive this payment?
The IRS identifies those who filed their 2021 return but did not claim the credit. Maybe you left it blank or even put a 0 in the corresponding section. If this is your case, it’s very likely that the IRS has included you in this group.
But keep in mind that if you didn’t even file your 2021 return, you still have time.
The agency reminds you that you can file the return until April 15, 2025, and claim the credit and any other refund you might have pending. The best part is that even if you barely earned any money, or none at all, you can still qualify.
Do you need to do anything to receive the payment?
No, you don’t need to lift a finger. The IRS will send the payments automatically, either via direct deposit to your bank account or by paper check. Additionally, you will receive a letter informing you that the payment has been issued. So, if you see something from the IRS in your mailbox, don’t ignore it.
According to IRS Commissioner Danny Werfel, this effort is part of their commitment to help taxpayers. Werfel explained: “By reviewing our internal data, we saw that a million people missed out on this complex credit, even though they were eligible. To avoid problems and make sure they receive their money, we are making these payments automatic.”
When will the payments arrive?
The agency indicated that the first checks will be sent in December, and most taxpayers will receive their money by the end of January 2025. If you changed bank accounts or closed the one you used on your most recent return, the IRS will resend the payment as a paper check to the address they have on file.
If you have any doubts, review your 2021 return or speak with a tax professional. It may not be a lot of money, but in tough times, every dollar counts. And if you haven’t filed your return yet, don’t miss the deadline. Claiming this credit is simple and can give you that small financial boost you need. Why let something that’s already yours slip away?
