The Internal Revenue Service (IRS) has revealed plans to automatically issue payments in December 2024 for individuals who failed to claim the Recovery Rebate Credit on their 2021 tax returns. This initiative aims to provide financial relief to eligible taxpayers who missed out on one or more Economic Impact Payments (EIPs), commonly referred to as stimulus checks.

Key Details on Claims and Payments

Individuals who did not claim the Recovery Rebate Credit during their 2021 tax filings have the opportunity to do so before the upcoming deadline. Here are the essential details:

• The deadline for claiming the credit is April 15, 2025.
• Eligible taxpayers must complete and file their 2021 tax returns to access the credit.
• The maximum payment amount is $1,400 per person, contributing to an estimated total issuance of $2.4 billion by the IRS.

Understanding Automatic Payments

Those who qualify for the Recovery Rebate Credit but did not claim it will likely receive their payments by late January 2025. The payments will be deposited directly into the bank account provided on the taxpayer’s 2023 tax return or sent via mail to the registered address.

The IRS will notify taxpayers receiving these payments through official letters. If any taxpayer’s bank account has been closed since their last tax filing, there is no need for further action. The IRS will reissue refunds to the taxpayer’s address on file once the payment is returned.

Eligibility for Non-filers

Taxpayers who have not filed a 2021 tax return may still be eligible for the Recovery Rebate Credit if they submit their returns before the April 15, 2025 deadline. Even individuals with minimal income are encouraged to file, as they may qualify for the credit despite their financial circumstances.