Who Will Receive Automatic IRS Stimulus Payments Sent to U.S. Citizens?

The Internal Revenue Service (IRS) is set to disburse $2.4 billion in special payments to taxpayers who missed out on collecting their COVID-19 pandemic stimulus payments. This initiative is aimed at approximately one million individuals who will receive up to $1,400 in reimbursements by the end of January.

These payments are specifically for those who failed to claim the Refund Recovery Credit on their 2021 tax returns, as per the IRS guidelines. People who did not receive one or more Economic Impact Payments (EIPs), also known as stimulus payments, are eligible to claim this refundable credit.

Who Is Eligible for the Stimulus Payments?

The IRS has identified that taxpayers who filed a 2021 tax return but either left the Refund Recovery Credit box blank or entered $0, despite being eligible for it, will be receiving special payments. The payment amount varies, but eligible taxpayers can receive up to $1,400 per person.

Special Reimbursement for Missed Stimulus Payments

According to IRS Commissioner Danny Werfel, an analysis of internal data revealed that one million taxpayers were qualified for the Refund Recovery Credit but did not claim it. One such taxpayer was Ginny Bultman, a 61-year-old resident of Colorado.

Bultman, who had not received a stimulus payment in 2021, found out she was eligible for the Refund Recovery Credit after reading about it. She received her payment the very next day, amounting to $4,200 for her family.

Ginny, who owns a local locksmith business, referred to it as a pleasant surprise when she found out that her family would be receiving three missed stimulus payments, one of which was for her child.

How Much Will Qualified Taxpayers Receive?

The amount each taxpayer will receive varies based on their eligibility, but the IRS will be distributing a total of approximately $2.4 billion to those who missed claiming the Refund Recovery Credit on their 2021 tax returns.

Payments could be as much as $1,400 per individual, with additional amounts for qualifying children. For full details on how the payments are calculated and eligibility, the IRS has provided online resources.

Why Are These Payments Being Sent Out?

The Refund Recovery Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments in 2020 or 2021.

The IRS initiated these additional payments after reviewing their data and discovering that many eligible taxpayers, despite having filed 2021 tax returns, failed to claim this credit.

As Danny Werfel emphasized, automating the payment process helps alleviate inconvenience for eligible taxpayers, ensuring they do not have to file an amended return to receive their credit.

How Will You Receive Your Payment?

If you qualify for the Refund Recovery Credit, no action is required on your part. The IRS will send you a letter notifying you of your special payment.

These stimulus payments will be processed automatically, arriving by either direct deposit or check by the end of January. They will be deposited into the bank account listed on your 2023 tax return or mailed to the address the IRS has on file.

What if I Haven’t Filed My 2021 Tax Return Yet?

If you have not yet filed your 2021 tax return, you still have time to receive the payment. The IRS advises that even if you have little or no income, you must still file a tax return and claim the Refund Recovery Credit before the April 15, 2025 deadline.

History of COVID-19 Stimulus Payments

During the pandemic, a total of $814 billion was distributed in three rounds of stimulus payments. These payments were calculated based on income, tax filing status, and the number of dependents or children in the household. The payments were provided under various acts:

• CARES Act (March 2020): Eligible individuals received up to $1,200 per tax filer and $500 per child.
• Consolidated Appropriations Act (December 2020): Eligible individuals received up to $600 per tax filer and $600 per child.
• American Recovery Plan Act (March 2021): Eligible individuals received up to $1,400 per tax filer and $1,400 per child.

The IRS‘s disbursement of $2.4 billion in stimulus payments aims to provide relief to taxpayers who missed claiming the Refund Recovery Credit on their 2021 tax returns.

By sending automatic payments to one million eligible individuals, the IRS is ensuring that those who missed out on Economic Impact Payments during the pandemic can still receive their rightful credits without the need for filing updated returns.

Eligible taxpayers should expect to receive payments up to $1,400 by the end of January, with further opportunities for those who have yet to file their taxes.

FAQ

Who qualifies for the IRS stimulus payment?

Taxpayers who did not claim the Refund Recovery Credit on their 2021 tax return despite being eligible for it.

How much will I receive?

Eligible individuals can receive up to $1,400, depending on their circumstances.

How will the payment be delivered?

Payments will be issued either by direct deposit or check.