After a rough 2024, most people would be thrilled about extra, unexpected money at the end of the year. For a million Americans, this is about to become their reality.
According to the tax returns but did not claim the Recovery Rebate Credit. The amount of surprise money could be up to $1,400.
IRS Commissioner Danny Werfel is proud of his organization’s drive to get the money into the hands of its rightful owners. “These payments are an example of our commitment to go the extra mile for taxpayers,” he explained.
You don’t have to fill out any paperwork or sit for hours on hold if you are eligible. The checks will be sent out automatically – even if you filled out your 2021 tax return incorrectly or left the rebate section blank.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” Werfel went on to explain. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
The payment will be sent out either via direct deposit or check. The IRS will use information from the recipients’ 2023 tax returns. It will attempt to utilize the listed there but if it is closed, the check will be placed in the mail instead. There is hope for those who have not yet filed their 2021 tax returns. To receive the rebate, you must file by Apr. 15, 2025.
This unexpected windfall is linked to the stimulus payments during the Covid-19 pandemic. There were three altogether. Under then-President Trump, eligible taxpayers received two payments, the first was $1,200 and the second $600. President Biden issued a third for $1,400.
The majority of eligible people received the funds. Those who were and did not receive a check or direct deposit for the full amount were given the option of filing for the rebate credit. Still, some people fell through the cracks in the system and this is the IRS’s way of making that right.
It is believed that around $2.4 billion will be sent out. Checks started going out in Dec. 2024 and the process should be complete by the end of Jan. 2025. A letter notifying eligible recipients is also being sent out to explain the situation.
As an added bonus any Recovery Rebate Credit received does not count as income in of federal benefits. It will not decrease or end your Supplemental Security Income, Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families or the Special Supplemental Nutrition Program for Women, Infants, and Children aid. Looks like for some Americans, Santa had one last gift as we transition into 2025.
Published: Dec 27, 2024 04:20 am