The IRS plans to issue automatic “special payments” of up to $1,400 to 1 million taxpayers starting later this month, the agency announced last week.

The payments will go to people who did not claim the 2021 refund credit on their tax return for that year and are eligible for the money.

The Recovery Rebate Credit is a refundable tax credit available to individuals who have not received one or more economic impact payments – more commonly known as stimulus checks – made by the federal government in response to the Covid-19 pandemic .

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The maximum payment is $1,400 per person and varies depending on the circumstances, the IRS said. The agency is estimated to make a total of about $2.4 billion in payments.

“When we looked at our internal data, we found that one million taxpayers had failed to claim this complex credit even though they were actually eligible,” IRS Commissioner Danny Werfel said in a statement. “To minimize hassle and make this money available to eligible taxpayers, we are making these payments automatically, meaning these individuals do not have to go through the extensive process of filing an amended tax return to receive them.”

The new payments are scheduled to be sent automatically in December. In most cases, the money should arrive by the end of January, according to the IRS.

Eligible taxpayers can expect to receive the money either by direct deposit or by check in the mail. You will also receive a separate letter informing you of the payment.

Direct deposits go to taxpayers who have current bank account information with the IRS.

If eligible individuals have closed their bank accounts since filing their 2023 tax returns, IRS payments will be reissued by check to mailing addresses of record. According to the agency, there is no need for action for these taxpayers.

The payments will only go to taxpayers who are eligible for the 2021 Refund Credit – specifically, people who filed a 2021 tax return but did not claim the Refund Credit even though they were eligible by either leaving the data field blank or returning $0. dollars entered.

Taxpayers who did not file a 2021 tax return still have the opportunity to claim the credit. However, you must submit a claim by April 15, 2025 to claim the credit and any other refunds owed to you.

Claiming the refund credit does not count as income and affects eligibility for certain other federal benefits, including Supplemental Security Income (SSI); Supplemental Nutrition Assistance Program, or SNAP; Temporary Assistance to Needy Families or TANF; and a special supplemental nutrition program for women, infants and children (WIC).

The IRS provides further information on payment eligibility and amounts on its website.