IRS to Automatically Send $1.4K Payments to Taxpayers Who Missed COVID Stimulus
In December 2024, the IRS announced it would automatically send
$1,400 payments to approximately 1 million taxpayers who missed claiming the
COVID-19 stimulus payments. These payments are part of the
Recovery Rebate Credit, which helps individuals who did not receive the full amount of stimulus funds or missed one of the stimulus checks. The IRS will issue these payments in late January 2025. Let’s dive into the details of this special payment, how it works, and who will be eligible.
What Is the Recovery Rebate Credit?
The
Recovery Rebate Credit was introduced as part of the
COVID-19 relief package, allowing taxpayers who missed one or more stimulus payments to claim the amount they were entitled to on their tax returns. In addition, the credit covered those who received less than the full stimulus amount due to filing status, number of dependents, or other issues.
The IRS discovered that some taxpayers inadvertently missed this credit while filing their 2021 tax returns. As a result, the IRS decided to
automatically send $1.4k payments to taxpayers who missed COVID stimulus that they were eligible for.
Who Will Receive the $1,400 Payments?
The
IRS to automatically send $1.4k payments to taxpayers who missed COVID stimulus are directed at individuals who filed their 2021 tax returns but either left the Recovery Rebate Credit section blank or mistakenly listed the credit as $0 despite being eligible for it. According to the IRS, this payment will be sent to about
1 million taxpayers, totaling around
$2.4 billion.
Who Is Eligible for the Payment?
To qualify for the
$1,400 payment, taxpayers must have:
- Filed a 2021 tax return but failed to claim the Recovery Rebate Credit or mistakenly claimed $0 for it.
- Missed or received less than the full amount of one of the previous COVID stimulus payments (Economic Impact Payments or EIPs).
- Not filed an amended tax return since then, which would have corrected the oversight.
If you were in this group, you do not need to take any action—
the IRS will automatically send $1.4k payments to taxpayers who missed COVID stimulus, and they should be arriving soon.
How Will the Payments Be Distributed?
The IRS has confirmed that these special
$1,400 payments will be made through
direct deposit into the bank accounts listed on the
2023 tax return. If direct deposit information isn’t available, taxpayers will receive a
paper check in the mail.
These payments will begin to be sent by
late January 2025, with most arriving by then. The
IRS to automatically send $1.4k payments to taxpayers who missed COVID stimulus is a significant relief measure for those who were overlooked during the earlier payment rounds.
What If You Haven’t Filed Your 2021 Tax Return Yet?
If you did not file your
2021 tax return or did not claim the Recovery Rebate Credit, you could still be eligible for a refund. To receive the
$1,400 payment, you must file your 2021 tax return before
April 15, 2025 and claim the
Recovery Rebate Credit.
As a reminder, the IRS
automatically sends $1.4k payments to taxpayers who missed COVID stimulus. However, you can only receive your payment if you have filed correctly.
Filing a Tax Return After Missing the Credit
If you missed claiming the credit, the best option is to
file an amended return. Ensure that the
Recovery Rebate Credit is correctly included so that you can qualify for your $1,400 payment.
Why Did the IRS Make These Payments?
The IRS identified that a group of taxpayers, particularly those who were eligible for the
third round of COVID stimulus payments, did not claim the
Recovery Rebate Credit. These individuals may have overlooked it or failed to correctly complete the necessary form while filing their 2021 taxes. To correct this issue and ensure fairness, the IRS decided to
automatically send $1.4k payments to taxpayers who missed COVID stimulus.
This is an important move, as it ensures that those who were unintentionally left out of previous payments will now receive the money they deserve.
What Are the Eligibility Criteria for the Stimulus Payments?
The
stimulus payments were initially designed to help people during the pandemic by providing financial relief. To determine eligibility for the payments, the IRS considered several factors, including:
- Filing status: Whether you filed as single, married filing jointly, etc.
- Income: The amount of your adjusted gross income (AGI).
- Dependents: How many qualifying children or dependents you have.
The amount each person received varied based on these factors, and many taxpayers were eligible for the
$1,400 per individual payment if they met the criteria. But, as noted, some eligible individuals failed to claim the credit, which led to the
IRS to automatically send $1.4k payments to taxpayers who missed COVID stimulus.
Will You Automatically Get the $1,400 Payment?
The likelihood of receiving the
$1,400 payment depends on whether you previously missed the Recovery Rebate Credit or did not claim it correctly. The IRS is addressing this issue for approximately
1 million taxpayers. However, if you received the full stimulus amount already, you will not receive an additional payment.
The IRS has assured taxpayers that if you are eligible, the payment will be sent automatically, so there’s no need to take action. The
IRS to automatically send $1.4k payments to taxpayers who missed COVID stimulus will be processed without additional steps on the part of the taxpayer.
When Will the Payments Be Sent?
Payments will begin to be sent by
late January 2025. Those who qualify should see the funds deposited into their
bank accounts or mailed as a check by that time. If you are eligible, it’s important to check your
bank account or mailbox around the same time to ensure you receive your payment.
How Can You Check the Status of Your Payment?
The IRS provides an online tool where you can check your
Recovery Rebate Credit status and eligibility for the
$1,400 payment. You can also contact the IRS for assistance if you believe you missed the payment or need clarification on the process. However, for most taxpayers, the
IRS to automatically send $1.4k payments to taxpayers who missed COVID stimulus should be sufficient to get the payment to you automatically.
Conclusion
The IRS has taken significant steps to ensure that taxpayers who missed out on claiming the
COVID stimulus payments will be made whole. If you were among the
1 million taxpayers who did not claim the
Recovery Rebate Credit correctly on your 2021 tax return, the IRS will
automatically send $1.4k payments to taxpayers who missed COVID stimulus. You do not need to take any action—just ensure your tax filings are up to date and keep an eye out for your payment by late January 2025.
If you haven’t filed your
2021 tax return, make sure to do so before
April 15, 2025, to still claim the credit and receive your rightful payment.
