The IRS has announced it will distribute $2.4 billion in “special payments” to about 1 million Americans. These payments aim to ensure that those who missed out on federal stimulus checks during the pandemic will receive the funds they are entitled to, with a maximum payment of $1,400 per recipient.
Who Qualifies for These Stimulus Payments?
The payments are being sent automatically to taxpayers who qualified for the Recovery Rebate Credit in 2021 but did not claim it on their tax returns. The Recovery Rebate Credit was designed for individuals eligible for federal stimulus checks but either didn’t receive the full amount or missed out entirely.
Legislators authorized the three rounds of stimulus checks, with two payments issued in 2020 and the third in 2021. While most eligible taxpayers received their payments during those years or later through the rebate credit, the IRS identified a gap where some individuals were overlooked.
Thanks to a review of internal data, the IRS pinpointed approximately 1 million people who are still eligible for these payments. These recipients either filed their tax returns but didn’t claim the credit or were otherwise eligible but did not receive the full amount of their stimulus payments.
Do You Need to Take Action?
No additional action is required from recipients. According to IRS Commissioner Danny Werfel, the payments are being made automatically to minimize inconvenience and eliminate the need for taxpayers to file amended returns. This ensures a streamlined process for those eligible. The IRS will also send letters to notify recipients about the payments. These communications will outline the details, including the amount and method of delivery, whether via direct deposit or mailed paper checks.
When Will the Payments Be Sent?
The payments are set to be distributed in December 2024, with most recipients receiving the funds by late January 2025. The IRS will use direct deposit for recipients with bank accounts on file, while others will receive their payments as paper checks through the mail.
The agency’s efforts aim to close the gap for individuals who missed critical financial support during the pandemic. With many Americans facing economic challenges, these payments offer a much-needed boost to those who qualified but were inadvertently overlooked.
The IRS prioritizes efficiency and accessibility by ensuring automatic distribution and clear communication. For those eligible, this final round of stimulus-related payments will close a key pandemic-era financial support initiative. Staying informed and monitoring your bank account or mail in the coming months will help ensure you receive the payment you are entitled to.
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