CNN
—

Who couldn’t use a little extra money in January without having to lift a finger?

One million taxpayers will soon receive a letter from the IRS saying they will receive money because they were eligible to receive the 2021 Refund Credit but did not claim it on their 2021 federal tax return.

The recovery rebate credit was intended for people who did not receive one or more stimulus payments, known as Economic Impact Payments, during the pandemic.

“These payments are an example of our commitment to going the extra mile for taxpayers. When we looked at our internal data, we found that one million taxpayers overlooked claiming this complex credit when 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 so that these individuals do not have to go through the extensive process of filing an amended tax return to receive them.”

Payment amounts can be up to $1,400 per individual (plus up to $1,400 per eligible dependent), but depend on the applicant’s 2021 income and other factors. But generally, you won’t be eligible for any portion of the credit unless your adjusted gross income for 2021 was less than $160,000 if you were married; under $120,000 if you filed as head of household; or under $80,000 if you were a single applicant.

It is a refundable credit, meaning you could get a refund even if you had no federal income tax liability for 2021.

The agency said the payments, totaling about $2.4 billion, should be received by the end of January in most cases.

They will be made either by direct deposit or check, depending on which method the applicant prefers for reimbursement. “The payment will be made to the bank account or address of record listed on the taxpayer’s 2023 tax return,” the IRS said.

If you are eligible for a payment but have closed your bank account since filing your 2023 tax return, the agency added: “The bank will return the payment to the IRS and the refund will be reissued to the address of record.”

The agency also encouraged anyone who has not yet filed their 2021 tax return to do so by April 15, 2025, to claim the refund credit (if eligible) and any other refunds they may be entitled to gain weight.