Check Your Mail: IRS Sending Money to 1 Million Unexpected Tax Filers
Discover how the IRS is automatically sending Recovery Rebate Credit payments to one million eligible tax filers. Learn about eligibility, payment details, and how to claim your credit if you haven't filed yet.
Who wouldn't appreciate a little extra cash in January without lifting a finger?
Soon, one million tax filers will receive letters from the IRS notifying them of unclaimed funds. These individuals were eligible for the 2021 Recovery Rebate Credit but did not claim it on their 2021 federal tax returns.
The Recovery Rebate Credit was designed to assist people who missed one or more stimulus payments, known as Economic Impact Payments, during the pandemic.
These payments demonstrate our commitment to going the extra mile for taxpayers. After analyzing our internal data, we identified one million taxpayers who were eligible for this complex credit but overlooked claiming it, said IRS Commissioner Danny Werfel. To simplify the process, these payments will be automatic, eliminating the need for taxpayers to file an amended return.
Payment amounts can reach up to $1,400 per individual, plus an additional $1,400 per qualifying dependent, varying based on the filer's 2021 income and other factors. Generally, eligibility requires an adjusted gross income below $160,000 for married couples filing jointly, $120,000 for heads of household, or $80,000 for single filers.
Because this is a refundable credit, individuals may receive a refund even if they had no federal income tax liability in 2021.
The IRS stated that payments, totaling approximately $2.4 billion, should arrive by late January via direct deposit or paper check, depending on the taxpayer's refund preference. The payment will be sent to the bank account listed on the taxpayer's 2023 tax return or to their address of record, the IRS noted.
If an eligible individual's bank account has been closed since filing their 2023 return, the IRS added, the bank will return the payment to the IRS, and the refund will be reissued to the address of record.
The agency also urged those who have not yet filed their 2021 tax returns to do so by April 15, 2025, to claim the Recovery Rebate Credit and any additional refunds they may be entitled to receive.
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