As inflation and the rising cost of living continue to impact American families, the IRS is providing a much-needed financial lifeline with special payments of up to $1,400. These payments are designed to assist taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax return, providing an additional boost to help ease financial burdens. Around one million taxpayers are expected to benefit from this refundable credit.
Who Is Eligible for the $1,400 Payment?
The IRS is automatically issuing these payments to those who were eligible for the Covid-19 stimulus payments but failed to claim the Recovery Rebate Credit when filing their 2021 taxes. Thankfully, eligible individuals do not need to take any action to receive the payment. The IRS has already identified these taxpayers in its system, and many have already received their payments through direct deposit into the bank account listed on their 2023 tax return.
While no exact timeline has been set, the IRS anticipates completing the distribution of payments by January 2025. For those who did not receive their payment via direct deposit, checks will be mailed to the address the IRS has on file.
IRS’s Efforts to Ensure Payments Reach Taxpayers
The Economic Impact Payments (EIPs), issued in three rounds, revealed that many taxpayers who were eligible for the Recovery Rebate Credit didn’t claim it on their 2021 tax returns. In an effort to address this issue, the IRS has taken steps to automatically distribute refunds to ensure these taxpayers receive the financial assistance they are entitled to.
IRS Commissioner Danny Werfel emphasized, “We are making these automatic payments to make the process easier and to ensure that the money reaches those who need it most. This way, taxpayers won’t have to file an amended return to receive the credit.”
Deadline to Claim the $1,400 Refund
For those who have not yet received the special payment, there is still time. If you did not file a 2021 tax return, you may still be eligible for the Recovery Rebate Credit. The IRS has stated that taxpayers who missed filing in 2021 must file a tax return in order to claim the credit, even if their income was low or nonexistent.
The deadline for filing a 2021 tax return and claiming the credit is April 15, 2025. This is the final opportunity to claim the $1,400 refund, so be sure to file your return before the deadline.
What Should You Do?
If you haven’t received the refund or if you were unsure whether you qualified for the Recovery Rebate Credit, now is the time to check.
- If you have already filed a 2021 tax return and missed claiming the credit, no action is needed. You may have already received your payment.
- If you didn’t file a 2021 return and believe you qualify for the credit, you must file your tax return by April 15, 2025, to receive your $1,400 refund.
Keep an eye on IRS updates to stay informed about the distribution timeline and other relevant details.