WPBN: In the upcoming weeks, the IRS will automatically provide special payments of up to $1,400 to about 1 million taxpayers. The funds will either be mailed as a physical check or directly deposited into the bank accounts of qualified individuals.
According to the IRS, approximately $2.4 billion will be disbursed to taxpayers who neglected to include a Recovery Rebate Credit on their 2021 tax returns.
The credit was available to those who had received less than the full amount of the COVID stimulus payments or who had missed one of them. However, the IRS reported on Friday that it had found that many qualified individuals had not.
In a statement, IRS Commissioner Danny Werfel said, “After examining our internal data, we discovered that one million taxpayers failed to claim this complex credit when they were truly qualified.”
Further details regarding the unforeseen funds that this taxpayer group would shortly get are as follows:
How likely is it that I’ll get a check?
I apologize; it’s probably quite low. Federal stimulus funds, formerly known as Economic Impact funds, have already been disbursed to the majority of eligible taxpayers, according to the IRS.
Taxpayers who filed a 2021 for return but either left the Recovery Rebate Credit data box blank or filled it out as $0 when they were actually entitled for the credit will receive the special payouts that the IRS announced.
How is this going to operate?
Taxpayers who qualify are not required to do anything. This month, the payments will be made automatically, and by the end of January 2025, they should come via cheque or direct transfer.
They will be delivered to the address the IRS has on file or to the bank account specified on the taxpayer’s 2023 return.
Although payments will differ, each person may receive up to $1,400. Details regarding eligibility and the calculation of the payment have been made available online by the IRS.
Eligible taxpayers will get separate letters from the IRS informing them of the special payment.
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What happens if I haven’t yet submitted my tax return for 2021?
The money may still be available to you. However, the IRS states that even if a taxpayer’s income from a job, business, or other source was little or nonexistent, they still need to file a tax return and claim the Recovery Rebate Credit before the deadline of April 15, 2025.
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What was the number of COVID stimulus payment rounds?
The $814 billion was distributed in three stages to homes affected by the pandemic. The amounts that people received were determined by the IRS based on their income, tax filing status, and the number of qualified dependents or children they had.
The CARES Act provided up to $1,200 per income tax filer and $500 per child to qualified individuals in March 2020. Under the Consolidated Appropriations Act, eligible persons received up to $600 per kid and $600 each income tax filer in December 2020.
Under the American Rescue Plan Act, qualified taxpayers received up to $1,400 per kid and $1,400 per income tax filer in March 2021.
