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Here’s who will receive a stimulus check from the IRS

Here’s who will receive a stimulus check from the IRS

The IRS is distributing around $2.4 billion to taxpayers who did not receive their COVID stimulus payments. By the end of January, about 1 million taxpayers will receive special payments of up to $1,400 from the IRS.

The IRS said it is distributing these payments to taxpayers who did not claim a refund credit on their 2021 tax return. The Recovery Rebate Credit is a repayable loan for people who have not received one or more Economic Impact Payments (EIP), also known as stimulus 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.

One taxpayer who benefited was Ginny Bultman, 61, of Colorado. Bultman and her husband did not receive any stimulus payment in 2021. After checking on the latest IRS payments, she realized she qualified for the Recovery Rebate Credit. A day later, she received her check in the mail.

“It was a pleasant surprise,” said Bultman, who owns a locksmith business in her town.

The Bultman family received three late stimulus payments, including one for their minor son, which totaled $4,200 at the end of December.

Here’s what you need to know about IRS payments.

Who is entitled to a check?

The special payments announced by the IRS will be sent to those taxpayers who filed a 2021 tax return but left the refund credit data field blank or filled the field with $0 when they were actually eligible for the credit.

How much money will eligible taxpayers receive?

Payments vary, but the maximum is $1,400 per person. In total, the IRS will distribute about $2.4 billion to taxpayers who did not claim a refund credit on their 2021 tax return.

The IRS has posted information online about eligibility and how the payment is calculated.

Why is the IRS sending out stimulus checks?

The Recovery Rebate Credit is a repayable loan for people who did not receive Economic Impact Payments, also known as stimulus payments, in 2020 and 2021.

The IRS announced this initiative after reviewing its internal data and finding that many eligible taxpayers who filed a 2021 tax return had not claimed the credit.

“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,” Werfel said .

If I am entitled to a grant, how do I receive it?

If you are eligible for the Refund Credit, you do not need to take any action. The IRS plans to send letters to eligible taxpayers informing them of the special payment. Payments will be made automatically this month and should be received by direct deposit or check by the end of January. They will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address on file with the IRS.

What if I haven’t filed my 2021 tax return yet?

You may still be able to receive the money. However, according to the IRS, taxpayers must file a tax return and claim the refund credit by April 15, 2025, even if income from a job, business or other source was minimal or nonexistent.

How many rounds of COVID stimulus payments were there?

There were three rounds of payments to households affected by the pandemic, worth a total of $814 billion. The IRS based the amounts taxpayers received on their income, tax filing status and number of children or eligible dependents.

In March 2020, eligible individuals under the CARES Act received up to $1,200 per income taxpayer and $500 per child. In December 2020, eligible individuals received up to $600 per income taxpayer and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income taxpayer and $1,400 per child under the American Rescue Plan Act.

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The Associated Press receives support from the Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

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