The IRS is set to issue automatic Recovery Rebate Credit (RRC) payments to eligible taxpayers who missed claiming this credit on their 2021 tax returns. If you haven’t received your full share of COVID-19 relief payments, this could be your opportunity to get the funds you are entitled to without lifting a finger. Read on to learn more about how these payments work, eligibility requirements, and what steps you need to take to ensure you receive your payment.
What Are Recovery Rebate Credit Payments?
The Recovery Rebate Credit was introduced as part of the COVID-19 relief measures to provide financial support to individuals who did not receive the full stimulus payment amount they were entitled to. Many eligible taxpayers may have missed claiming this credit on their 2021 tax returns, leaving money on the table.
Good news! The IRS is now issuing automatic payments to those who missed out on the credit. If you qualify, you’ll receive the payment automatically—no need to do anything. This could mean a payment of up to $1,400 per individual, and the total payout is expected to reach around $2.4 billion nationwide.
Key Details About the Automatic Payments
- Payment Distribution Date: The IRS will begin issuing these payments in December 2024, with most recipients receiving theirs by late January 2025.
- Payment Amount: Individual payments could be as much as $1,400.
- How Payments Will Be Sent: The majority of payments will be sent via direct deposit to the bank account listed on your 2023 tax return. For those without direct deposit information on file, paper checks will be mailed to your address of record.
- Notification: All eligible recipients will receive a notification letter from the IRS detailing their payment.
Who Is Eligible for the Automatic Payments?
You may be eligible for the automatic Recovery Rebate Credit payment if you meet the following conditions:
- You filed a 2021 tax return.
- You were eligible for the Recovery Rebate Credit but failed to claim it.
- You either left the Recovery Rebate Credit field blank or entered $0 on your return.
- You meet the IRS’s income and dependency requirements that applied to the original stimulus payments.
- You filed your return through proper channels.
The IRS has already identified these individuals through an internal review process. If you qualify, your payment will be issued automatically without any further action required on your part.
How Payments Will Be Distributed
Payments will primarily be made via direct deposit to the bank account listed on your 2023 tax return. If the IRS does not have your bank account information, they will send you a paper check to the address they have on file.
Important: Make sure your address is up-to-date with the IRS to avoid any delays or complications with receiving your payment.
Additionally, the IRS will send a notice letter to each recipient detailing the amount of the Recovery Rebate Credit payment, which will help you keep track of the disbursement.
What If You Haven’t Filed Your 2021 Tax Return Yet?
If you still haven’t filed your 2021 tax return, there’s still time to claim your Recovery Rebate Credit—but you must act quickly. The deadline to file and claim the credit is April 15, 2025.
Even if you had minimal or no income in 2021, you may still be eligible for the credit, but you must file a tax return to claim it. Don’t miss out on this opportunity to secure the payment you’re entitled to.
What You Need to Know About the Recovery Rebate Credit Payments
- Federal Benefits: The Recovery Rebate Credit payments will not affect your eligibility for federal benefits such as SSI, SNAP, TANF, or WIC. These payments are not counted as income when determining eligibility for such programs.
- Verify Payment Amounts: If you need to verify the amounts of previous stimulus payments, you can access this information through your IRS Online Account. This can be helpful if you need to confirm any discrepancies or track the status of your payments.
- Changes to Your Bank Account: If you’ve changed your bank account since filing your 2023 tax return, don’t worry. If the IRS is unable to deposit the payment into your bank account due to it being closed, they will send a paper check to the address they have on file.
How Our Tax Professionals Can Help You
At JS Morlu LLC, we’re here to guide you through this process. If you’re unsure whether you qualify for the automatic Recovery Rebate Credit payment, our experienced tax advisors can help you determine your eligibility.
If you haven’t filed your 2021 tax return yet, we can assist you in filing it before the April 15, 2025 deadline, ensuring you receive all credits you’re entitled to. Our team can also review your overall tax situation to maximize your deductions and credits, helping you keep more of your hard-earned money.
Additionally, we can help you navigate the IRS Online Account to verify previous stimulus payment amounts or answer any questions you may have about the automatic payment process.
Next Steps: Don’t Miss Out on Your Payment!
If you believe you’re eligible for the Recovery Rebate Credit or need assistance with filing your tax return, don’t hesitate to reach out to us. Our team is ready to help you navigate the complexities of the tax system and ensure you receive the financial support you deserve.
It’s always a good idea to keep your contact information up-to-date with the IRS and keep accurate records of any communication regarding your payment. We’re here to help you every step of the way.
Stay informed and make sure you don’t miss out on the automatic Recovery Rebate Credit payment. Contact us today to get started or for assistance with any tax-related concerns!
