IRS Sends $2.4 Billion in Missing Stimulus Payments—Check Your Eligibility

In a welcome move to help Americans recoup missing pandemic relief, the IRS has begun sending out stimulus checks to one million eligible taxpayers. These checks, amounting to as much as $1,400 per person, aim to address overlooked claims from the 2021 Recovery Rebate Credit.

The total payout, estimated at $2.4 billion, is part of the IRS’s efforts to ensure no eligible taxpayer misses out on vital financial support from the pandemic-era stimulus programs.

Who Qualifies for These Payments?

If you filed a 2021 tax return and either left the Recovery Rebate Credit section blank or mistakenly entered $0, you might be in line for a check. Eligibility primarily includes individuals who:

• Experienced a significant drop in income in 2021.
• Had a child or adopted a dependent that year.
• Were no longer listed as dependents by others in 2021.

The IRS has already identified eligible recipients and will automatically send payments, so no additional steps are required. If your bank details or address have changed since filing your 2021 taxes, the IRS advises you to update them to avoid delays.

How Payments Are Being Sent

The checks are being distributed in two main ways:

1. Direct Deposit: Funds will be transferred to the bank account associated with your 2023 tax return.
2. Paper Checks: Those without direct deposit information on file will receive payments via mail at the address listed in their tax records.

The distribution began in December 2024 and is expected to be completed by the end of January 2025.

Why Are These Payments Happening Now?

During the pandemic, three rounds of stimulus payments were issued under federal relief packages. While most Americans received their payments, some eligible individuals were overlooked or encountered complexities when claiming them on their tax returns.

This latest round of payments focuses on unclaimed 2021 stimulus funds, ensuring that families and individuals receive every dollar they are entitled to.

What Should Taxpayers Do Next?

If you haven’t yet filed your 2021 tax return, there’s still time. The IRS has extended the deadline to April 15, 2025, for anyone looking to claim the Recovery Rebate Credit. This extension allows even low-income earners or those with no income to file and receive their payment.

The IRS is encouraging all taxpayers to double-check their 2021 returns and consult their records to ensure they’ve claimed all eligible credits.

The Bigger Picture

This effort is part of the federal government’s broader initiative to support Americans impacted by the COVID-19 pandemic. Over the last three years, billions of dollars have been disbursed to provide economic relief to families, small businesses, and communities nationwide.

If you think you might qualify for one of these checks, act quickly and review your 2021 tax filing status. This could mean significant financial relief when you need it most.