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In the upcoming weeks, a select group of taxpayers will be receiving a unique payment from the IRS.
Here’s an overview of the rebate payment and the recipients involved:
The IRS stimulus check refers to direct payments made by the Internal Revenue Service (IRS) to eligible individuals and families as part of economic relief measures, particularly in response to the financial impacts of the COVID-19 pandemic. These payments, officially known as Economic Impact Payments (EIPs), were designed to provide financial assistance to help people cover essential expenses and stimulate the economy. The amount of the stimulus check varied based on income and family size, and payments were issued in multiple rounds, with the first payments starting in April 2020.
The upcoming IRS stimulus payment is officially referred to as the 2021 Recovery Rebate Credit. This payment was part of a series of three COVID-related stimulus checks distributed to families during the pandemic.
In March 2021, the American Rescue Plan Act provided eligible individuals with payments of up to $1,400 for each income tax filer and an additional $1,400 for every qualifying child.
Recently, the IRS has pinpointed a limited number of taxpayers who either did not claim this credit or received an amount that was less than what they were entitled to, and they are now distributing the owed funds.
Who is eligible to receive the IRS stimulus check?
The IRS said most taxpayers eligible for the federal stimulus payments, formally known as Economic Impact Payments, have already received them, but that approximately 1 million taxpayers did not claim the credit.
Taxpayers who submitted a 2021 tax return but either omitted the Recovery Rebate Credit field or indicated $0, despite being qualified for the credit, are receiving the unpaid credits.
What is the total amount due?
Payment amounts may differ, but the highest possible payment will be $1,400 for each individual.
Where does the money originate from?
The payments will be processed automatically and are expected to be delivered via direct deposit or check by the end of the month.
The funds will be directed to the bank account specified on the taxpayer's 2023 tax return or to the address that the IRS has recorded.
Taxpayers who qualify do not need to take any steps.
The Source: Information in this article was taken from The Associated Press and an FAQ page on the IRS website about the 2021 Recovery Rebate Credit, and was originally reported on Dec. 22, 2024. This story was reported from Detroit.
