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IRS to Issue Automatic Recovery Rebate Credit Payments: What You Need to Know

The Internal Revenue Service has announced plans to automatically issue payments to eligible taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns.

What You Should Know About the Automatic Payments

The good news for eligible taxpayers is that no action is required to receive these payments. The IRS will begin distributing them in December 2024, with most recipients expected to receive their payments by late January 2025. Individual payments may reach up to $1,400, with the total disbursement expected to reach approximately $2.4 billion nationwide.

Eligibility Requirements

The IRS has identified specific criteria for these automatic payments. You may be eligible if you:

Filed a 2021 tax return
Were eligible for the Recovery Rebate Credit but didn't claim it
Either left the credit field blank or entered $0 on your return
Meet the IRS's income and dependency requirements for the original stimulus payment
Filed your return through proper channels

The IRS has identified these individuals through an internal review of tax returns and will process their payments automatically.

How Payments Will Be Distributed

The IRS plans to distribute these payments primarily through direct deposit, using the bank account information provided on the taxpayer's 2023 tax return. For those without direct deposit information on file, the IRS will mail paper checks to the address of record. Additionally, all recipients will receive a notification letter from the IRS about their payment.

Important Information for Those Who Haven't Filed 2021 Returns

If you haven't yet filed your 2021 tax return, you may still be eligible for the Recovery Rebate Credit, but time is limited. The deadline to file and claim the credit is April 15, 2025. This opportunity is available even to those who had minimal or no income during that year, but you must file a tax return to receive the credit.

Additional Considerations

It's important to note that these Recovery Rebate Credit payments will not affect eligibility for federal benefits. Programs such as SSI, SNAP, TANF, and WIC will not count these payments as income when determining benefit eligibility. If you need to verify previous stimulus payment amounts, you can access this information through your IRS Online Account.

If your bank account has changed since filing your 2023 return, don't worry. Should the payment be returned to the IRS due to a closed account, they will automatically reissue it to your address of record.

How We Can Help

As your trusted tax advisors, we're here to support you through this process. Our team can help determine if you're eligible for this automatic payment and assist with filing a 2021 tax return if you haven't done so already. We can also review your overall tax situation to ensure you're receiving all eligible credits and deductions, and help you access your IRS Online Account to verify previous stimulus payment amounts.

Next Steps

If you have questions about the Recovery Rebate Credit or need assistance with your tax matters, please don't hesitate to contact our office. Our experienced team is ready to help you navigate these complex tax situations and ensure you receive all the benefits you're entitled to.

Remember: While these payments are automatic for eligible taxpayers, it's always wise to keep accurate records of any correspondence from the IRS and maintain up-to-date contact information with the agency.

Contact Information

For personalized guidance:

Schedule a consultation: https://koalendar.com/u/easoncpa-appointment
Contact our office: (770) 474-0464

Disclaimer: This blog provides general information and should not be construed as specific tax advice. Individual consultation with a qualified tax professional is recommended for your specific situation.