IRS to Send $1,400 Stimulus Checks to 1 Million Taxpayers – Are You Eligible

Millions of Americans may have overlooked a significant financial benefit, but there’s good news: the IRS is stepping in to ensure they don’t miss out. Around one million taxpayers who qualified for the third round of Economic Impact Payments, commonly known as stimulus checks, will soon receive payments of up to $1,400. These funds, unclaimed from earlier relief programs, aim to provide financial support to individuals and families.

Unclaimed Payments Resurfacing

The stimulus payments were a vital lifeline for many during the COVID-19 pandemic. They provided much-needed relief for those struggling to cover rent, utilities, and groceries. However, not everyone who qualified for the payments received them. The reasons for these unclaimed funds vary, from filing errors to income status changes or even missing tax return information.

Now, the IRS is rectifying this by identifying eligible individuals and distributing these unclaimed payments directly. According to officials, this initiative is part of a broader effort to ensure every taxpayer receives the benefits they are entitled to.

Why the Delay?

The third round of stimulus payments, authorized by the American Rescue Plan Act of 2021, distributed $1,400 per individual and an additional $1,400 per dependent. However, some payments went unclaimed due to various issues. In many cases, taxpayers who didn’t file a tax return for 2021 were unaware they needed to claim their payment. Others may have mistakenly entered incorrect information, causing their credit to go unprocessed.

To address these oversights, the IRS thoroughly reviewed 2021 tax filings. This review uncovered nearly one million eligible individuals who failed to claim their payments. By launching this initiative, the IRS ensures these payments are delivered without requiring additional action from taxpayers.

Who Qualifies for the Payments?

The IRS has outlined specific eligibility criteria for these unclaimed payments. To qualify, individuals must meet the following requirements:

• Filed a 2021 Tax Return: Taxpayers must have submitted a 2021 tax return, even if they didn’t owe any taxes. This filing serves as the basis for determining eligibility.
• Missed Recovery Rebate Credit: The Recovery Rebate Credit allowed taxpayers to claim any stimulus payments they missed in earlier rounds. If this credit was left unclaimed or incorrectly calculated, the IRS will correct it automatically.
• Income Thresholds: Eligibility depends on adjusted gross income (AGI). Individuals earning up to $75,000 and married couples earning up to $150,000 qualify for the full payment. For those with higher incomes, the payment amount gradually phases out.

The $1,400 payment for dependents applies to each child or qualifying relative listed on the taxpayer’s return.

How Will Payments Be Distributed?

The IRS has reassured taxpayers that no additional action is required to receive these payments. Eligible individuals will automatically receive their funds through direct deposit or mail as a paper check. Those who provided bank account information on their tax returns can expect payments to be deposited directly, while others will receive checks sent to the address on file.

The distribution process is expected to begin immediately, with most payments arriving by late January 2025. In addition, the IRS will send a letter to each recipient detailing the payment amount and its purpose.

What About Late Filers?

If you didn’t file a 2021 tax return, there’s still time to claim your payment. The IRS has extended the deadline for taxpayers to submit their returns and claim the Recovery Rebate Credit. This allows those who missed the original filing deadline to ensure they receive their entitled benefits.

Even if your income was below the threshold requiring you to file a tax return, you are encouraged to submit one. This is especially important for low-income households and those who don’t typically file taxes, as they are likelier to miss out on these payments.

The deadline for filing a 2021 return and claiming the Recovery Rebate Credit is April 15, 2025. Taxpayers can use IRS Free File or consult a tax professional to ensure their return is accurate and complete.

Why Does This Matter Now?

The timing of these payments couldn’t be better for many families. With inflation continuing to impact household budgets and the holiday season leaving some strapped for cash, an unexpected $1,400 can make a significant difference. These funds can cover overdue bills, address medical expenses, or even provide an emergency cushion.

For the broader economy, the distribution of these funds injects much-needed cash into local businesses and communities. Stimulus payments have been shown to boost consumer spending, which helps sustain economic growth.

What Should You Do Next?

If you believe you may be eligible for an unclaimed payment, there are steps you can take:

1. Check Your 2021 Tax Return: Review your 2021 tax return to ensure you correctly claimed the Recovery Rebate Credit. If you missed it, you can file an amended return.
2. Monitor Your Mail or Bank Account: Watch for a letter from the IRS or a direct deposit notification. These payments are being distributed automatically, so you don’t need to take any action if you meet the eligibility criteria.
3. File Your 2021 Tax Return: If you haven’t filed yet, submit your 2021 tax return as soon as possible to claim your payment before the April 2025 deadline.

Where to Get Help

Navigating tax matters can be confusing, but resources are available to help. The IRS website provides detailed information about the Recovery Rebate Credit and eligibility criteria. Additionally, free tax preparation services are available for low-income individuals and seniors through the Volunteer Income Tax Assistance (VITA) program.

For those who prefer professional guidance, consulting with a tax advisor can ensure your return is accurate, and you don’t miss out on any benefits.

This initiative from the IRS highlights the agency’s commitment to ensuring all eligible taxpayers receive their rightful benefits. With one million payments on the way, many families will start the new year with a financial boost. If you think you might qualify for an unclaimed stimulus check, take action today to ensure you receive the support you’re entitled to.

These efforts remind taxpayers that they should stay informed about their rights and benefits. You can maximize the financial support available during challenging times and beyond by keeping accurate records and filing timely returns.