According to a recent IRS announcement, the agency will automatically send special payments of up to $1,400 to nearly one million taxpayers starting in December 2024. These payments, totaling about $2.4 billion, are part of the 2021 Recovery Rebate Credit program and target eligible individuals who did not claim the credit on their tax returns.
According to CNBC, IRS Commissioner Danny Werfel explained in his official statement that the agency discovered through internal data analysis that one million taxpayers were eligible for this credit but had not claimed it. To simplify the process, the IRS decided to make these payments automatic, eliminating the need for taxpayers to file amended returns.
The IRS said that most eligible recipients should receive their payments by late January. For those with current bank information on file, the distribution will occur through direct deposit or paper checks mailed to the address on record. The IRS will send separate notification letters to all recipients about their payments. The IRS will automatically reissue payments as paper checks for those whose bank accounts have closed since filing their 2023 tax returns.
The payments specifically target individuals who filed 2021 tax returns, but left the Recovery Rebate Credit field blank or entered $0 despite being eligible. The IRS states that taxpayers who haven't filed their 2021 returns still have until April 15, 2025, to claim the credit and any other refunds they owe.
CNBC also confirmed that the IRS has clarified that these payments won't affect eligibility for federal benefit programs, including Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC). The agency notes that receiving this credit won't count as income for these programs.
The IRS directs taxpayers to visit its official website for more detailed information about payment eligibility and amounts.
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