Key Details as Payments Roll Out
The IRS is issuing $1,400 stimulus checks to approximately one million taxpayers in the coming weeks, with payments sent via direct deposit or paper checks. Here’s what you need to know about eligibility, timelines, and how to claim your payment if you qualify.
Why Are These Stimulus Checks Being Sent Now?
These payments are part of a $2.4 billion effort by the IRS to distribute funds to taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This credit was designed to help individuals who didn’t receive the full amount from previous COVID-19 stimulus payments.
According to IRS Commissioner Danny Werfel, many eligible taxpayers failed to claim this complex credit despite qualifying for it. “Looking at our internal data, we realized that one million taxpayers overlooked claiming this credit when they were actually eligible,” Werfel explained.
Who Qualifies for the $1,400 Stimulus Check?
Most taxpayers who were eligible for previous federal stimulus payments—also known as Economic Impact Payments (EIPs)—have already received their funds. However, these new payments target individuals who filed a 2021 tax return but:
- Left the Recovery Rebate Credit field blank, or
- Incorrectly entered “$0” when they were eligible to claim the credit.
Eligible individuals could receive up to $1,400 per person.
How Will Payments Be Sent?
The IRS will automatically send payments to qualifying taxpayers. If you’re eligible:
- Funds will be deposited directly into the bank account listed on your 2023 tax return, or
- A paper check will be mailed to the address on file with the IRS.
Payments are expected to arrive by late January 2025. The IRS will also mail letters to notify recipients of their payment eligibility and amount.
Haven’t Filed Your 2021 Tax Return? Here’s What to Do
If you haven’t filed your 2021 tax return yet, there’s still time to claim your payment. To be eligible, you must:
- File a 2021 tax return by the April 15, 2025 deadline and claim the Recovery Rebate Credit.
- File even if you had little or no income in 2021, as non-filers may still qualify.
For more details on eligibility and how your payment is calculated, visit the IRS website.
Recap of COVID-19 Stimulus Payments
To date, the U.S. government has distributed three rounds of COVID-19 stimulus payments, totaling $814 billion. Here’s a quick breakdown:
- March 2020: Up to $1,200 per individual and $500 per qualifying child under the CARES Act.
- December 2020: Up to $600 per individual and $600 per qualifying child under the Consolidated Appropriations Act.
- March 2021: Up to $1,400 per individual and $1,400 per qualifying child under the American Rescue Plan Act.
These payments aimed to provide financial relief to individuals and families affected by the pandemic, based on income, tax filing status, and number of dependents.
Key Takeaways
If you’re unsure whether you qualify for the new $1,400 stimulus payment, check your 2021 tax return. Ensure you’ve claimed the Recovery Rebate Credit if eligible. For further assistance, visit the IRS website or consult a tax professional.
By staying proactive, you can make sure you don’t miss out on this financial support
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