In an important update, the Internal Revenue Service (IRS) revealed in December 2024 that it will automatically issue payments to individuals who failed to claim the Recovery Rebate Credit during their 2021 tax return filings. This credit is aimed at those who did not receive some or all of the Economic Impact Payments (commonly known as stimulus checks) previously.

Important Deadlines and Payment Information

The IRS has indicated that the majority of eligible taxpayers have already received their payments. However, individuals who have yet to submit their 2021 tax returns may still qualify for benefits.

• The deadline for filing 2021 tax returns and claiming the Recovery Rebate Credit is April 15, 2025.
• Payments could reach up to $1,400 per person, depending on individual circumstances.
• The IRS estimates that total credits will amount to approximately $2.4 billion.

Understanding Automatic Payments

Taxpayers who qualify but did not claim the Recovery Rebate Credit on their 2021 filings are expected to receive their payments automatically by late January 2025. Payments will be dispatched to the bank account associated with the taxpayer’s 2023 tax return. If a taxpayer’s bank account has changed, the IRS will send a check to the address on file.

The IRS will also communicate with taxpayers receiving these payments through letters, detailing important information regarding the credits.

Eligibility for Non-filers

The IRS emphasizes that individuals who did not file their 2021 tax returns may still have the opportunity to claim the Recovery Rebate Credit if they file by the stipulated deadline. This includes individuals with minimal or no income from various sources who are encouraged to file.