WASHINGTON (AP) — The Internal Revenue Service announced Thursday it will distribute $2.4 billion in stimulus payments to approximately one million taxpayers who were eligible for but did not claim the 2021 Recovery Rebate Credit, marking the final major distribution of pandemic-era financial assistance.
The automatic payments of up to $1,400 per person will be sent by late January to taxpayers who either left the credit field blank or entered zero on their 2021 tax returns, despite being eligible for the payment.
“One million taxpayers overlooked claiming this complex credit when they were eligible,” said IRS Commissioner Danney Werfel. “We’re making these payments automatic to minimize headaches and get this money to taxpayers quickly.”
The payments are part of the Recovery Rebate Credit, designed for individuals who missed receiving Economic Impact Payments during the COVID-19 pandemic. Most eligible Americans have already received their payments and won’t qualify for this distribution.
Recipients will receive funds either through direct deposit to the bank account listed on their 2023 tax return or via paper check mailed to their address of record. The IRS will use the most recent contact information available in their system.
Taxpayers who haven’t filed their 2021 returns can still claim the credit by filing by April 15, 2025, even with minimal or no income. The IRS will process refunds for eligible individuals once returns are filed.
The initiative follows internal IRS analysis revealing that many eligible taxpayers failed to claim the credit, prompting the agency to streamline the process by eliminating the need for amended returns.
“This automatic payment process ensures that eligible taxpayers receive the benefits they’re entitled to without additional paperwork or delays,” an IRS spokesperson said.
The distribution represents one of the last major pandemic relief efforts, coming nearly four years after the initial stimulus payments began. The IRS has worked to identify and reach eligible recipients who may have missed earlier payments due to filing complications or confusion about eligibility requirements.
For detailed information about payment calculations and eligibility criteria, the IRS directs taxpayers to visit their website. The agency emphasizes that no action is required from taxpayers who are eligible for these automatic payments.
