IRS Will Send Automatic Stimulus Payments Soon: Find Out Who’s Getting Paid!

Stimulus Payments Soon: During the COVID-19 pandemic, many American citizens received financial aid, some of whom got a reprieve from their tax obligations. Now, the US Internal Revenue Service (IRS) is sending out special payments to individuals who did not claim the Refund Recovery Credit on their 2021 tax returns. According to the IRS, about $2.4 billion is being distributed, and about one million people will be eligible for this special payment, which will be received by the end of January.

Automatic stimulus payments being sent by IRS

IRS Commissioner Danny Werfel commented, “We studied our internal data and found that one million taxpayers were eligible but did not claim this hardship credit.” Colorado resident Ginny Buttleman, 61, was one of those who benefited. Buttleman and her husband did not receive any stimulus payments in 2021, but they recently read about the payment made by the IRS and found that they qualified for the Refund Recovery Credit. They received their payment in the mail the next day.

“It was a pleasant surprise,” Ginny Buttleman said. The Buttleman family received $4,200 in three payments in late December, one of which was for their young child.

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Who is eligible to receive a check?

The IRS said taxpayers who entered the data box for the Refund Recovery Credit as $0 or left it blank when they filed their 2021 tax returns but were eligible for it will receive a special payment.

How much payment will they get?

The amount of payments eligible taxpayers will receive varies, but each person could receive up to $1,400. In total, the IRS will distribute about $2.4 billion to taxpayers who did not claim the Refund Recovery Credit on their 2021 tax returns.

Why is the IRS sending stimulus payments?

Taxpayers who did not receive the Economic Impact Payment (EIP) in 2020 and 2021 are entitled to the Refund Recovery Credit. After analyzing its data, the IRS found that many eligible taxpayers did not claim this credit when filing their 2021 tax returns. On this basis, the IRS has started this program so that those taxpayers can be paid automatically.

IRS Commissioner Danny Werfel said, “We are sending payments automatically for this purpose so that eligible taxpayers can receive this money, and they do not have to amend their returns.”

If I am eligible, how will I get a payment?

You do not need to take any steps if you qualify for the Refund Recovery Credit. The IRS will send notification letters to qualifying taxpayers who will receive information about their special payment. The government will distribute stimulus payments through automatic channels using either direct deposits or checks by January’s end. Your payment will travel to your designated bank account from your 2023 return information or to the IRS-maintained address.

What if I haven’t filed my 2021 tax return yet?

You can still obtain payment from the IRS if you have not yet filed your 2021 tax return. According to the IRS, taxpayers must file their tax return to claim the Refund Recovery Credit regardless of their income level through April 15, 2025.

How many rounds of COVID-19 stimulus payments were there?

The government distributed $814 billion in stimulus payouts to American citizens through three pandemic-related stimulus programs. The federal government distributed payments to taxpayers who filed taxes together with dependent family members while determining payments according to individual earnings as well as marital status and dependent counts.

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Taxpayers received a $1,200 direct payment from the CARES Act for each tax filer and got $500 for each child in March 2020. The December 2020 Consolidated Appropriations Act gave each tax filer $600 and provided $600 for each child. Through the American Recovery Plan Act in March 2021, taxpayers received a $1,400 payment per filer along with $1,400 for each qualifying dependent in their tax filing.

Conclusion

This move by the IRS brings relief news for taxpayers who did not receive stimulus payments during the COVID-19 pandemic. Now, they will automatically receive payments after confirming their eligibility. If you are eligible, you can get this amount without any extra effort, which will provide you with financial assistance quickly.