IRS sending special payments up to $1,400 to 1 Million taxpayers

The Internal Revenue Service (IRS) announced December 20, that they would be sending special payments up to $1,400 to 1 million taxpayers.

The IRS said the payments, to go out later this month, will be to eligible people who did not claim the Recovery Rebate Credit on their 2021 tax returns.

Eligibility

The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments.

The agency reviewed internal data that showed many eligible taxpayers who filed a return but did not claim the credit.

The payments vary depending on several factors, but the maximum payment is $1,400 per individual. The estimated amount of payments going out will be about $2.4 billion.

No action is needed

The IRS said no action is needed for eligible taxpayers to receive these payments, which will go out automatically in December and should arrive in most cases by late January 2025.

The payments will be automatically direct deposited or sent by paper check; eligible taxpayers will also receive a separate letter notifying them of the payment.

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