The IRS has announced plans to automatically issue payments to eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. This credit, which provides up to $1,400 per individual, was designed to assist those who missed out on full stimulus payments during the pandemic. The IRS estimates that around one million taxpayers will benefit from this initiative, amounting to a total distribution of approximately $2.4 billion. Eligible individuals include those who filed their 2021 returns but either left the Recovery Rebate Credit field blank or reported $0 when they were entitled to a refund. Importantly, taxpayers who have not yet filed their 2021 returns can still claim the credit by doing so before April 15, 2025. Payments will be automatically deposited or mailed as paper checks, with most expected to arrive by late January 2025. A notification letter will also be sent to recipients.
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