$1,400 Stimulus Automatic Payment – How It Works and What You Need to Know

The United States IRS has identified over 1 million taxpayers who missed the Recovery Rebate Credit on their 2021 tax returns. In this response IRS department now distributing $2.4 billion in special payments to ensure eligible individuals receive their entitlement funds.

The article provides an overview of the payments and the IRS’s handling of this process.

Recovery Rebate Credit

The IRS Recovery Rebate Credit, introduced as part of the government’s COVID-19 relief measures allowed individuals to claim unpaid portions of their Economic Impact Payments (EIPs), or stimulus checks, issued in three rounds by the IRS and the U.S. Department of the Treasury.

Internal Revenue Service (IRS) Commissioner Danny Werfel revealed that 1 million taxpayers failed to claim a credit in 2021 due to incorrect entries in the relevant field or “$0” on their returns.

$1,400 Stimulus Automatic Payment

The IRS is simplifying taxpayers’ tax process by automatically issuing payments to eligible individuals instead of requiring amended returns. The IRS is automatically issuing payments to those identified Individuals who are eligible.

Direct Deposit

• Taxpayers with a registered bank account linked to their 2023 tax return should have already received the $1,400 stimulus payment via direct deposit.
• Please ensure that your bank details are accurate or not to avoid delays or complications in your tax return.

Checks by Mail

• Individuals who opted for a paper check refund will receive their stimulus payments by the end of January 2025.
• Payments will be mailed to the address the IRS has on file, so verify that your address is up to date to prevent issues

Werfel emphasized that the automatic approach reduces administrative burdens and ensures taxpayers receive refunds without unnecessary delays.

Who Is Eligible

Filed 2021 Tax Return: If you filed a 2021 tax return but didn’t claim the Recovery Rebate Credit, you might still be eligible to receive up to $1,400 per individual.

Missed Economic Impact Payments: This payment is designed to cover gaps from the pandemic-era relief programs for those who were eligible but did not receive payments.

Taxpayers

The Internal Revenue Service (IRS) department has identified eligible individuals through its internal system, so most taxpayers don’t need to take any action to receive the payment.

Things You Need To Know

• IRS Banking Updates Check for direct deposit if banking information is updated.
• Ensure the current address for mailed refunds.
• Update address with Form 8822 if necessary.

Why This Stimulus Matters

The Revenu department is demonstrating its commitment to ensuring taxpayers receive their full entitlements, particularly those who may have missed out due to the complex filing requirements of the Recovery Rebate Credit, emphasizing the importance of careful tax return review.

The IRS is providing financial assistance to millions of Americans by addressing oversights, even years after the initial stimulus payments were issued.