IRS Automatically Sending $2.4 Billion in $1,400 Payments to 1 Million Taxpayers

Dec 23, 2024, 12:45 PM

The Internal Revenue Service (IRS) announced that it will automatically send payments of up to $1,400 to approximately 1 million taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns. These payments, totaling about $2.4 billion, are expected to be distributed this month and should arrive by direct deposit or paper check by late January 2025. Eligible taxpayers, who need not take any action, include those who were entitled to the third round of Economic Impact Payments (stimulus checks) but did not receive them or received less than the full amount. The IRS will also send letters to notify eligible individuals about the special payments.