Key Takeaways:

• The IRS is mailing out $1,400 stimulus checks for eligible taxpayers who did not claim the Recovery Rebate Credit (RRC) on their 2021 tax returns.
• Over 1 million Americans are set to benefit from these automatic payments totaling about $2.4 billion.
• Payments will be received by direct deposit or paper check, with notifications sent regarding the payments.

Recently, the Internal Revenue Service (IRS) announced the initiation of a significant distribution of stimulus payments, reaching over 1 million eligible taxpayers who did not claim their rightful Recovery Rebate Credit (RRC) on their 2021 tax returns. The announcement comes as the IRS noted a gap where many individuals qualified for relief but had their earnings documented incorrectly on the tax forms. These attributable payments, or Economic Impact Payments (EIPs), are finally being sent out to provide much-needed financial assistance.

The checks, worth up to $1,400, aim to rectify missed payments from the past, with eligible recipients expected to receive their payments by the end of January 2025. IRS Commissioner Danny Werfel remarked, “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it” (USA Today).

The total amount allocated for this initiative is approximately $2.4 billion, targeting individuals who were overlooked due to an absence of recorded claims for the RRC. According to the IRS, those eligible will not need to take any action, as payments are being disbursed automatically; however, they will receive a notification letter detailing their expected payment.

Taxpayers who may not have filed their 2021 returns shouldn't worry; they can still claim the RRC by filing before April 15, 2025. The IRS emphasized that even those with minimal or no reportable income from their job, business, or other sources are still entitled to claim this credit, providing vital support during challenging economic times.

This updated initiative from the IRS comes amidst various discussions regarding economic recovery and support systems established during the COVID-19 pandemic. As more taxpayers report receiving these unexpected funds on social media, many express their surprise and gratitude. For example, one user shared their experience saying, “I just got a stimulus check in the mail because I never got one during COVID,” showcasing the positive reception of this financial relief (Newsweek).

Overall, the IRS's action reflects a commitment to assisting those who have faced financial hardship and ensuring that all eligible taxpayers have the opportunity to benefit from these additional funds. For more information on eligibility and payment details, please refer to Newsweek or check the guidance on USA Today.