The Internal Revenue Service (IRS) is rolling out up to $1,400 to approximately one million taxpayers who missed out on their Covid-19 stimulus payments in 2021. This initiative aims to ensure eligible individuals receive the funds they’re entitled to, even if they didn’t originally claim them.
In a move to simplify the process, the IRS is bypassing the usual requirement for taxpayers to amend their 2021 returns. Instead, payments are being sent automatically to those who qualify under the Recovery Rebate Credit program, which was part of the government’s economic relief measures during the pandemic.
Why These Payments Are Being Issued
The Recovery Rebate Credit was created to help taxpayers claim Economic Impact Payments—commonly known as stimulus checks—that they may have missed during the pandemic. The IRS found that many eligible individuals overlooked this credit, often due to the complexity of the tax filing process.
“Through internal reviews, we identified over a million taxpayers who didn’t claim this credit despite being eligible,” said IRS Commissioner Danny Werfel. “To make it easier and avoid the need for amended returns, we’re ensuring these payments are issued automatically.”
If you haven’t filed your 2021 tax return, there’s still time to claim this credit—but you must do so by April 15, 2025.
Understanding Eligibility
The Recovery Rebate Credit provides up to $1,400 per person, with the exact amount determined by adjusted gross income (AGI) and family size. Here’s a breakdown of how eligibility works:
- Single Filers: You are eligible for the full $1,400 if your 2021 AGI was $75,000 or less. Payments decrease for incomes over $75,000 and phase out entirely at $80,000.
- Married Filing Jointly: Couples earning $150,000 or less qualify for $2,800 (for two people). The credit is reduced for incomes above $150,000 and is completely phased out at $160,000.
- Dependents: Families can receive an additional $1,400 per dependent, regardless of age. The same income thresholds apply.
Even if you left the Recovery Rebate Credit field blank or entered $0 on your 2021 tax return, the IRS will issue the payment automatically if you meet the criteria.
When and How Payments Will Arrive
Payments are already being processed, and most eligible taxpayers can expect to receive them by late January 2025. They will be deposited into the bank account listed on your most recent tax return or sent as a paper check if no direct deposit information is available.
The IRS will also send a confirmation letter to notify recipients of their payment.
If you haven’t filed your 2021 tax return yet, there’s still time. Submitting your return before the April 15, 2025 deadline ensures you can claim the credit and receive the payment.
What This Means for You
This initiative ensures financial relief reaches those who missed their stimulus payments during the pandemic. If you believe you might be eligible, now is the time to review your tax records or file your 2021 return. With automatic payments already underway, millions of Americans are finally receiving the support they missed.