The budget in the face of financial difficulties that many Americans have can be helped with good news in their bank accounts for around 1 million taxpayers who will receive from the IRS a special payment of up to $1,400, for a refundable credit.
The Internal Revenue Service (IRS) is in the process of issuing automatic payments to eligible individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns, corresponding to their Covid-19 stimulus payments
The IRS reported that eligible taxpayers do not have to do anything to claim the refund because they have already been detected in the system, some have already received a direct deposit in the bank account registered on their 2023 return, and although there is no exact date, the distribution of payments is scheduled for the end of January 2025, including those who will receive the refund with a check that will be sent to the address that the IRS has on record.
Why is the IRS issuing a $1,400 refund?
The Economic Impact Payment (EIP) was distributed by the IRS and the US Department of the Treasury in three rounds, but it was found that many eligible taxpayers filed a return but did not claim the Recovery Rebate Credit.
The IRS is sending special payments to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or completed it as $0 when they were actually eligible for the credit.
“To minimize headaches and get this money to eligible taxpayers, we are making these automatic payments, which means these individuals will not have to go through the lengthy process of filing an amended return to receive it,” Danny Werfel, IRS commissioner, said in a statement in December.