Unclaimed Recovery Rebate Credits: IRS Distributes $2.4 Billion to Taxpayers

If you’ve been waiting for some financial relief, good news: the IRS has started sending out $1,400 stimulus payments to about one million people who never got their full payments during the earlier stimulus rounds. These payments come from a government effort to make sure no one is left behind, especially those who didn’t claim the Recovery Rebate Credit on their 2021 tax returns. And the best part? You don’t need to do a thing—these payments are being sent automatically.

Why Are People Getting More Stimulus Payments?

During the pandemic, millions of Americans received stimulus checks. However, some people either didn’t get the full amount or missed the chance to claim what they were owed. The Recovery Rebate Credit was designed to fix that. But the IRS discovered that about one million eligible taxpayers never applied for it on their 2021 tax returns, which means they’ve been missing out on up to $1,400. To correct this, the IRS is stepping in and sending the money directly.

Who’s Getting the $1,400 Payments?

These payments are specifically for taxpayers who:

• Filed a 2021 tax return but didn’t claim the Recovery Rebate Credit.
• Qualified for the stimulus based on their income and other eligibility rules.

When Will You Get It?

The IRS started distributing the payments in December 2024, and most people should have their money by now. Direct deposits have already been made for those with banking information on file, while paper checks were sent to others. If you haven’t received anything yet, don’t panic—some checks could still be on their way.

What About Social Security Recipients?

If you receive Social Security benefits and missed earlier stimulus checks, this payment could still apply to you. Many retirees and fixed-income recipients are eligible, but they need to check whether the Recovery Rebate Credit was included in their 2021 tax filings. If not, this payment could be heading your way.