Unclaimed Tax Credits Worth Thousands! Are You One of the 1 Million Eligible?

In a significant update for millions of taxpayers, the IRS announced plans to distribute stimulus payouts to about 1 million people who did not claim the Recovery Rebate Credit when completing their 2021 tax forms. These payments, totalling up to $1,400, are projected to reach recipients by late January 2025. This initiative is part of the IRS’s continuous efforts to ensure that all qualified taxpayers receive the financial assistance they deserve.

If you missed claiming the credit in 2021, don’t worry—you may still receive the payout automatically, with no action required on your part. In this post, we’ll go over all you need to know about this payment, including qualifying requirements, how payments will be distributed, and what you can do if you haven’t submitted your 2021 tax return.

IRS Announces Unclaimed Tax Credits for Over 1 Million

The IRS’s decision to deliver stimulus reimbursements to 1 million taxpayers who did not claim their Recovery Rebate Credit is a positive step toward ensuring that everyone receives the financial assistance they are entitled to. If you did not claim the credit in 2021, you may be eligible for a payment of up to $1,400 in the following months—with no action required on your side.

Remember, if you have not yet filed your 2021 tax return, you still have until April 15, 2025. Filing your taxes allows you to collect any missing credits or refunds.

During the COVID-19 epidemic, the United States government distributed numerous rounds of stimulus cheques to assist people and families experiencing financial hardship. These funds were dispersed through the American Rescue Plan and other assistance programs. In 2021, many taxpayers were entitledtor the Recovery Rebate Credit, which was a key component of the stimulus package.

The Recovery Rebate Credit was intended to reimburse persons who did not get their stimulus payments in full or at all. To collect the credit, taxpayers have to declare it on their 2021 tax returns. Unfortunately, some qualified persons failed to complete this step, therefore they did not receive the credit. The IRS has now committed to ensuring that these individuals receive the cash to which they are entitled.

Eligibility

To qualify for the 2021 Recovery Rebate Credit, you must have submitted a 2021 tax return and either:

• Enter $0 in the Recovery Rebate Credit section of the tax form.
• Leave the section blank.

If you meet these requirements, you may be qualified for the credit, and the IRS will send you the cash automatically. However, it’s crucial to understand that you don’t have to do anything to collect the money; the IRS will handle everything. The payment will be made either by direct deposit or paper check, depending on the information provided in your 2023 tax return or the most recent address on file.