Stimulus checks may feel like a thing of the past, but for around 1 million taxpayers, the Internal Revenue Service (IRS) has a surprise in store—extra cash that they didn’t even know they were eligible for!
Here’s what’s happening: these payments are being sent to taxpayers who filed their 2021 tax returns but overlooked claiming the Recovery Rebate Credit (RRC). This credit was part of the third round of stimulus payments meant to support individuals and families during the COVID-19 pandemic. Some people mistakenly left the line for this credit blank or entered “$0” on their tax forms, missing out on potentially thousands of dollars.
What You Need to Know
The IRS is now stepping in to fix this oversight by sending payments automatically to eligible taxpayers. If you’re in this group, you don’t need to file an amended tax return or take any additional steps. The money will be deposited directly into your bank account or sent as a paper check to your mailing address. The IRS will also send letters confirming that these payments are on their way.
Why Are These Payments Being Issued?
The Recovery Rebate Credit was designed to ensure that individuals who didn’t receive the full stimulus amount they qualified for in advance could still claim it on their 2021 tax return. This was especially helpful for people whose financial or personal situations changed during the pandemic.
IRS Commissioner Danny Werfel explained, “We realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible. To minimize headaches and get this money to taxpayers, we’re making these payments automatic.”
When Will the Payments Arrive?
According to an IRS statement issued on December 20, these payments started going out automatically in late December. Most taxpayers are expected to receive them by late January. While exact dates aren’t provided, many recipients could already see the money in their accounts or mailboxes.
How Much Money Could You Receive?
The amount of money varies based on your circumstances. Here’s a breakdown:
- Single taxpayers with no dependents could receive up to $1,400.
- Married couples filing jointly could qualify for up to $2,800.
- Dependents claimed on the 2021 return could add an additional $1,400 per qualifying person, including college students, elderly parents, and adults with disabilities.
For example, a family of four could potentially receive up to $5,600, depending on their income and filing status.
Eligibility Criteria for the Surprise Stimulus Payment
To qualify for this unexpected windfall, you must meet these conditions:
- Filed a 2021 Tax Return: Only those who submitted their 2021 returns are eligible.
- Missed Claiming the RRC: The IRS identified individuals who didn’t claim the Recovery Rebate Credit despite qualifying for it.
- Income Limits: Eligibility is subject to income caps. For instance:
- Single filers earning over $80,000 were ineligible.
- Married couples earning over $160,000 also didn’t qualify.
Additionally, individuals who were dependents on someone else’s 2021 return or nonresident aliens do not qualify.
How the Payments Are Sent
The stimulus payments will be deposited into the bank account listed on your most recent tax return or mailed to your address of record. If your old bank account is closed, the IRS will reissue the payment as a paper check.
Why Some Taxpayers Missed Out Earlier
Many taxpayers didn’t realize they qualified for this credit because of the complex rules surrounding the 2021 stimulus payments. The eligibility criteria were stricter compared to earlier rounds, leading to confusion.
For example:
- Parents of children born or adopted in 2021 were eligible to claim the credit for those dependents.
- Recent college graduates, who were dependents in 2020 but not in 2021, also qualified if their income met the limits.
If your income dropped significantly in 2021 compared to previous years, you might now qualify for payments that weren’t available based on your 2019 or 2020 income.
Why the IRS Is Acting Now
The IRS’s decision to issue these payments comes as part of its ongoing efforts to improve taxpayer support and address overlooked credits. While the exact reasons for this timing remain unclear, it’s likely tied to the agency’s commitment to ensuring taxpayers receive all the benefits they’re entitled to.
Final Thoughts: Check Your Account or Mailbox!
This surprise stimulus payment could be life-changing for many families. If you think you might be eligible, keep an eye on your bank account and check your mailbox regularly. And remember, this payment is entirely automatic—you don’t need to file additional paperwork or take any extra steps.
With around $2.4 billion expected to be distributed across 1 million taxpayers, this effort highlights the importance of carefully reviewing tax credits each year. Whether it’s a new baby, a change in income, or another life event, it’s always worth double-checking your eligibility for available benefits.
Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.
Himanshu Sharma writes for The Octant, focusing on recruitment, government schemes, and current affairs. He is dedicated to making complex information accessible to readers.
Himanshu enjoys playing chess, hiking, and trying new recipes, always seeking ways to combine his love for writing with his passion for exploration.