The IRS is sending out automatic payments to eligible taxpayers who missed COVID stimulus funds
Colorado: The IRS is rolling out about $2.4 billion in automatic payments to taxpayers who missed out on their COVID stimulus checks. By the end of January, around 1 million people will get special payments of up to $1,400.
These payments are for folks who didn’t claim the Recovery Rebate Credit on their 2021 tax returns. This credit is for those who didn’t receive one or more Economic Impact Payments, which are basically the stimulus checks.
IRS Commissioner Danny Werfel mentioned that they found many taxpayers overlooked this credit, even though they were eligible. One of those lucky taxpayers is Ginny Bultman from Colorado. She and her husband missed out on their stimulus payment back in 2021. After hearing about these new payments, she realized she qualified and got her check the very next day.
Ginny was pleasantly surprised, especially since she runs a locksmith business. The Bultman family ended up receiving three late payments, totaling $4,200, including one for their son.
So, who can expect a check? The IRS is sending payments to those who filed a 2021 tax return but either left the Recovery Rebate Credit blank or mistakenly filled it in as $0.
Eligible taxpayers can receive up to $1,400 each. The IRS is distributing a total of about $2.4 billion to those who missed claiming this credit.
If you think you might qualify, you don’t need to do anything. The IRS will send out letters to let you know about the payment. You should see the money in your bank account or receive a check by late January.
Haven’t filed your 2021 tax return yet? You can still get the money, but you need to file and claim the Recovery Rebate Credit by April 15, 2025, even if you didn’t earn much or anything at all.
Just a reminder, there were three rounds of COVID stimulus payments, totaling $814 billion. The amounts varied based on income, filing status, and dependents. In March 2020, eligible individuals got up to $1,200, then $600 in December 2020, and finally $1,400 in March 2021.
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