Race Day Live (January 2025) – The IRS is releasing around $2.4 billion to taxpayers who did not get their COVID stimulus payments. By the end of January, about 1 million taxpayers will have received special payments of up to $1,400 from the IRS.
The IRS stated that these payouts are being distributed to people who did not claim a Recovery Rebate Credit on their 2021 tax returns. The Recovery Rebate Credit is a refundable credit for anyone who did not receive one or more Economic Impact Payments (EIPs), popularly known as stimulus checks.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.
Ginny Bultman, 61, of Colorado was one of the taxpayers who benefited. Bultman and her husband did not receive a stimulus payment in 2021. After reading about the recent IRS payouts, she realized she was eligible for the Recovery Rebate Credit. A day later, her check arrived in the mail.
“It was a pleasant surprise,” said Bultman, who owns a locksmith business in her town.
The Bultmans received three late stimulus payments, including one for their underage son, totaling $4,200 at the end of December. Here’s what you should know about IRS payments.
Must Read – Eligible California Families Can Claim $725 in January 2025 Stimulus Relief
Who is qualified to receive a check?
The IRS has stated that special payments will be made to individuals who filed a 2021 tax return but left the Recovery Rebate Credit data box blank or filled it out as $0 while they were qualified for the credit.
Why is the IRS issuing stimulus checks?
The Recovery Rebate Credit is a refundable credit for persons who did not receive Economic Impact Payments, often known as stimulus payments, in 2020 or 2021.
The IRS initiated this endeavor after evaluating internal data and discovering that many eligible individuals who filed a 2021 tax return failed to claim the credit.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” Werfel told reporters.
How much will eligible taxpayers get?
Payments will vary, but the maximum amount is $1,400 per person. In total, the IRS will distribute approximately $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 returns.
The IRS has made eligibility and payment calculation information available online.
Read More – February SSI Payments Coming Soon: Up to $943 for Eligible Beneficiaries in Several States
+ There are no comments
Add yours