IRS sends checks to 1 million taxpayers for refund credits

Eligible Arizona residents and other Americans who did not take advantage of the Recovery Rebate Credit in 2021 could receive money back from the Internal Revenue Service in the next few weeks.

The IRS announced plans to distribute the pandemic-related payments starting this month to 1 million taxpayers who filed their 2021 tax returns but did not claim the credit. That could reach about 20,000 households in Arizona.

IRS data shows that many eligible taxpayers filed a tax return but did not claim the credit, the agency said in a news release. Payments are made automatically to those eligible. These individuals can expect to receive their 2021 recovery credit by the end of January. Congress approved stimulus payments to stimulate the economy during COVID-19-related shutdowns.

Who is entitled to the funding payment?

Most taxpayers were eligible for stimulus payments, but generally those who reported high incomes were not.

Your credit amount will be reduced by the amount you received from the third Economic Impact Payment at that time. It could also be reduced if your 2021 adjusted gross income was over $75,000 (single filers), $112,500 (heads of household), or $150,000 (spouses filing jointly). No credit is available for taxpayers whose AGI exceeds $80,000 (single filers), $120,000 (heads of household), or $160,000 (joint filers).

The Recovery Rebate Credit was a complex and unusual provision, as even the IRS has noted. More detailed answers can be found on the irs.gov website.

How much money is being sent?

Eligible taxpayers can expect a maximum of $1,400, according to the IRS. A total of $2.4 billion will be transferred to those who did not receive the loan.

How do I receive my funding payment?

If you qualify, your payment will be sent automatically. You don’t have to do anything. The IRS will begin disbursing payments in late December, with payments received by the end of January in most cases.

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IRS sends checks to 1 million taxpayers for refund credits

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