IRS to Distribute Stimulus Payments to Taxpayers Who Overlooked 2021 Recovery Rebate Credit

U.S. taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax return may receive a stimulus check by the end of January, the Internal Revenue Service (IRS) announced.

The decision followed a review of IRS data, which revealed that some eligible taxpayers had filed their returns without claiming the credit. The Recovery Rebate Credit is a refundable credit for individuals who did not receive all or part of the Economic Impact Payments (EIP), commonly known as stimulus payments.

"After analyzing our internal data, we found that one million taxpayers missed claiming this complex credit despite being eligible," said IRS Commissioner Danny Werfel in a statement. "To streamline the process and get the funds to the right people, we are making these payments automatic, so taxpayers won't need to file an amended return to receive it."

IRS to Distribute Stimulus Payments to Taxpayers Who Overlooked 2021 Recovery Rebate Credit

Here's what eligible taxpayers need to know about the upcoming stimulus payments:

According to the IRS, taxpayers do not need to take any action to receive the payments, which were issued automatically in December and should be received by late January. Payments will be sent either by direct deposit or paper check.

Each eligible taxpayer will receive a separate letter notifying them of the upcoming payment.

Taxpayers can also review their 2021 tax returns to see if they missed the Recovery Rebate Credit section or filled it out as $0.

The amount of the stimulus payment will vary, with eligible taxpayers potentially receiving up to $1,400, the IRS confirmed. The total national payout is estimated at $2.4 billion.

For those who did not file a 2021 tax return, they may still qualify for the stimulus payment if they submit their 2021 return and claim the Recovery Rebate Credit by April 15, 2025.

The IRS emphasized that individuals who did not file a return must do so in order to claim the credit, even if their income was low or non-existent.