IRS to Distribute $2.4 Billion in Recovery Rebate Payments

Approximately one million Americans are set to receive their share of a $2.4 billion payout from the Internal Revenue Service (IRS). The payments are part of the Recovery Rebate Credit program, aimed at individuals who did not claim their coronavirus stimulus payments on their 2021 tax returns.

Who’s Eligible for the Payments?

The IRS has identified taxpayers who filed their 2021 returns but either left the Recovery Rebate Credit field blank or mistakenly claimed $0. Eligible Americans could receive up to $1,400 per payment.

Key details:

Automatic Payments: No action is needed for eligible individuals.
Delivery Timeline: Payments will be sent automatically by direct deposit or paper check in December 2024, with most arriving by late January 2025.
Notification: Recipients will receive a separate letter confirming their payment.

A Simple Process to Minimize Hassle

IRS Commissioner Danny Werfel emphasized the streamlined approach to distribute these funds:

“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic. These people will not be required to go through the extensive process of filing an amended return to receive it.”

Americans who have not yet filed their 2021 tax returns can still qualify for the Recovery Rebate Credit if they file by April 15, 2025.

What Is the Recovery Rebate Credit?

The Recovery Rebate Credit was introduced to provide financial relief to taxpayers who missed out on coronavirus-related stimulus payments. The credit is refundable, meaning eligible individuals can receive a refund even if they owe no taxes.

The IRS’s $2.4 billion payout offers eligible taxpayers a chance to claim overlooked funds from the pandemic era. By making the process automatic, the IRS ensures that these payments reach the right individuals with minimal effort required.

Americans who have yet to file their 2021 tax returns are encouraged to do so by the April 2025 deadline to take advantage of this opportunity.

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