If you filed your 2021 tax return but did not claim the Recovery Rebate Credit, take note. The IRS just stated that it will send a stimulus check this month to those who qualify but did not seek it at the time.
The sum can be as much as $1,400 per person, depending on what you were not receiving. According to the IRS, approximately $2.4 billion will be disbursed to almost one million qualified taxpayers.
What is the Recovery Rebate Credit, for which this stimulus check is being issued?
One way to think about it is as a financial lifeline that other individuals did not receive. During the pandemic, three rounds of stimulus checks were allowed, with two in 2020 and one in 2021. However, not everyone received the full amount to which they were entitled, which is why this verification is necessary. Basically, it permits you to claim money that you did not get on your tax return.
Who can receive this payment?
The IRS identifies taxpayers who submitted a 2021 return but did not claim the credit. Perhaps you left it blank or even entered a zero in the relevant area. If this is the case, the IRS has most certainly included you in this group.
The government reminds you that you have until April 15, 2025 to file your return and receive the credit and any other pending refunds. The best aspect is that you can still qualify even if you made very little or no money.
Is there anything you need to do to obtain the payment?
No, you do not have to lift a finger. The IRS will make the payments automatically, either through direct deposit into your bank account or by paper check. In addition, you will receive a note confirming that the money has been issued. So, if you receive a letter from the IRS, do not dismiss it.
According to IRS Commissioner Danny Werfel, this initiative is part of their commitment to assisting taxpayers. Werfel explained: “After reviewing our internal data, we discovered that a million people were eligible for this complex credit but did not receive it.” To eliminate issues and ensure that clients receive their money, we are automating these payments.”
When will the payments arrive?
The agency stated that the first payments will be mailed in December, and that most taxpayers will receive their money by the end of January 2025. If you moved banks or canceled the one you used on your most recent return, the IRS will reissue the payment by paper check to the address on file.
If you have any worries, analyze your 2021 return or consult a tax specialist. It may not be a lot of money, but in difficult circumstances, every dollar counts. Also, if you haven’t submitted your return yet, don’t miss the deadline. Claiming this credit is simple and can provide you with a small cash boost. Why let something that you already have slip away?
