Here’s who’s getting a stimulus check from the IRS

On January 15, 2025By Littum

The IRS is handing out about $2.4 billion to taxpayers who did not receive their COVID stimulus payments. By the end of January, approximately 1 million taxpayers will receive special payments of up to $1,400 from the IRS.

The IRS said it is distributing these payments to taxpayers who failed to claim a recovery discount credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for individuals who have not received one or more Economic Impact Payments (EIP), also known as stimulus 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 Danny Werfel said in a statement.

One taxpayer who benefited was Ginny Bultman, 61, of Colorado. Bultman and her husband did not receive a stimulus payment back in 2021. After reading about recent IRS payments, she realized she qualified for the recovery discount credit. A day later, she got her check in the mail.

“It was a pleasant surprise,” said Bultman, who owns a locksmith business in his town.

The Bultman family received three delayed stimulus payments, including one for their minor son, which totaled $4,200 in late December.

Here’s what you need to know about IRS payments.

Who is eligible to receive a check?

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

How much money will eligible taxpayers receive?

Payments will vary, but the maximum amount will be $1,400 per person. In total, the IRS will hand out about $2.4 billion to taxpayers who failed to claim a recovery discount credit on their 2021 tax returns.

The IRS has posted information online about eligibility and how the payment was calculated.

Why does the IRS issue stimulus checks?

The Recovery Rebate Credit is a refundable credit for people who did not receive the economic impact payments, also known as stimulus payments, during 2020 and 2021.

The IRS announced this initiative after reviewing its internal data and finding that many eligible taxpayers who filed a 2021 tax return did not claim the credit.

“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 filing an amended return to receive it,” Werfel said.

If I qualify for a stimulus payment, how do I receive it?

If you qualify for the recovery rebate credit, you don’t need to take any action. The IRS plans to send letters to eligible taxpayers notifying them of the special payment. Payments will automatically disappear this month and should arrive by direct deposit or check in late January. They will be sent to the bank account listed on the taxpayer’s 2023 return or to the address on file with the IRS.

What if I haven’t filed my 2021 tax return yet?

You may still be able to receive the money. However, taxpayers must file a tax return and claim the recovery discount credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to the IRS.

How many rounds of COVID stimulus payments were there?

There were three rounds of payments to households affected by the pandemic, totaling $814 billion. The IRS based the amounts taxpayers received on their income, tax filing status, and the number of children or qualifying dependents.

In March 2020, eligible individuals received up to $1,200 per income tax registrar and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax registrar and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax collector and $1,400 per child under the American Rescue Plan Act.

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