IRS to Distribute $2.4 Billion in Special Payments of Up to $1,400 for Recovery Rebate Credit

Dec 22, 2024, 03:37 PM

The Internal Revenue Service (IRS) is set to distribute approximately $2.4 billion in special payments to around 1 million taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. These payments, ranging up to $1,400 per individual, are intended for those who missed out on one or more of the Economic Impact Payments related to COVID-19 stimulus. The IRS, led by Commissioner Danny Werfel, identified these taxpayers through internal data and is sending the payments automatically this month, with most expected to arrive by late January 2025 via direct deposit or paper check. Eligible recipients will also receive a separate letter notifying them of the payment. Taxpayers who have not yet filed their 2021 returns have until April 15, 2025, to do so and claim the credit.