The IRS is set to distribute approximately $2.4 billion in automatic payments to around one million taxpayers who were eligible for the Recovery Rebate Credit (RRC) in 2021 but did not claim it. This initiative aims to assist those who overlooked this credit, which was designed for individuals who missed out on Economic Impact Payments during the COVID-19 pandemic. Eligible taxpayers do not need to take any action; the payments will be automatically deposited or mailed as checks by late January. The IRS has identified those who filed a tax return in 2021 but either left the RRC field blank or reported $0 as qualified for this special payment. The maximum payment amount can reach up to $1,400 per person, depending on individual circumstances. Taxpayers who have yet to file for 2021 may still claim the credit until April 15, 2025, to receive a potential refund.
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