The Internal Revenue Service (IRS) announced last month that automatic payments are being sent to roughly one million taxpayers who did not claim the 2021 Recovery Rebate Credit on their tax returns.
These payments, according to the IRS, were expected to be disbursed throughout December and arrive by late January 2025 “in most cases,” meaning most eligible recipients should receive them by this week or next at the latest.
Why are these payments being sent out?
The Recovery Rebate Credit was created to provide financial support during the COVID-19 pandemic for individuals who missed or did not receive the full amount of their Economic Impact Payments, commonly known as stimulus checks.
While most eligible taxpayers have already claimed their credits, IRS officials identified a significant group that overlooked this benefit.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” Danny Werfel, commissioner of the IRS, said in a statement in December. “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.”
How are these payments being disbursed?
The payments, which can reach up to $1,400 per individual, will be sent via direct deposit or as a paper check to the address or bank account listed on the recipient’s 2023 tax return. Those receiving payments will also be notified by letter. If a taxpayer’s bank account has changed, the funds will be reissued as a check to the updated address on file.
Am I eligible for a payment?
In total, the IRS estimates approximately $2.4 billion will be distributed through these final payments. Taxpayers who did not file a 2021 return but believe they are eligible have until April 15, 2025, to submit a return and claim the credit.
The IRS encourages taxpayers to confirm their eligibility using online resources or by reviewing the credit guidelines on the IRS website.
Importantly, if you are eligible for a payment and filed a 2021 return, you don’t not have to do anything. The payments are automatic.
The agency has also committed to further outreach during the 2025 tax season to ensure individuals understand other available benefits, such as the Earned Income Tax Credit and other pandemic-related tax relief.
This final round of payments closes the chapter on pandemic stimulus measures, offering a last opportunity for eligible individuals to access unclaimed financial support.
