Will the IRS pay qualified Californians and those who did not claim credit?

The IRS will make automatic stimulus payouts to qualified Californians and those who did not claim the Recovery Rebate Credit on their 2021 tax returns. According to the IRS, the money for one million eligible people should arrive by late January 2025. The IRS announced the payouts in a press statement on December 20 after evaluating internal data that revealed many eligible taxpayers who submitted a return but did not claim the credit. “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were eligible,” said IRS Commissioner Danny Werfel. 

How much money may Californians receive?

Payments vary depending on several circumstances, but the maximum is $1,400 per person. Payments are expected to total approximately $2.4 billion.

How will I receive my stimulus check?

The funds will be transferred automatically via direct deposit or paper check, and qualifying taxpayers will get a separate letter notifying them of the payment. Money will be sent to the taxpayer’s bank account or address of record as specified on their 2023 tax return. Taxpayers who have not yet filed their 2021 returns are eligible for the stimulus check provided they file and claim the Recovery Rebate Credit by April 15, 2025.

Who is eligible for this extra payment?

Individuals who put $0 or left the Recovery Rebate Credit field blank on their 2021 tax forms qualify for the credit. The IRS defines persons who receive the payment as “taxpayers for whom IRS data indicates qualification for the credit.”