In an effort to support taxpayers who missed out on the Recovery Rebate Credit, the IRS is set to distribute approximately $2.4 billion in automatic stimulus payments to around one million eligible individuals. This initiative comes after the IRS identified that many taxpayers who filed their 2021 tax returns overlooked claiming the credit, which is designed for those who did not receive one or more Economic Impact Payments during the pandemic. The payments will be issued by late January, either through direct deposit or paper checks, with no action required from the recipients. Eligible taxpayers include those who filed a 2021 tax return but did not claim the Recovery Rebate Credit or filled in $0 when they were eligible. The maximum payment is up to $1,400 per person. Taxpayers who have not yet filed their 2021 taxes can still claim the credit until April 15, 2025, to receive a refund.
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