Special Stimulus Payments to Those Who Missed Them in 2021
The IRS is issuing special payments of up to $1,400 to approximately one million taxpayers who did not claim the Recovery Rebate Credit (RRC) on their 2021 tax returns. These payments aim to provide financial relief to individuals who missed out on previous stimulus payments during the COVID-19 pandemic.
Eligibility Criteria:
- Non-Claimants of RRC: Taxpayers who filed a 2021 tax return but either left the RRC field blank or entered $0, despite being eligible, will receive these payments automatically.
- Income Thresholds for Full Payment:
- Single Filers: Adjusted Gross Income (AGI) below $75,000.
- Married Filing Jointly: AGI below $150,000.
- Head of Household: AGI below $112,500.
Payments phase out for incomes above these thresholds, with single filers earning up to $80,000, married couples up to $160,000, and heads of household up to $120,000 receiving partial payments.
Payment Details:
- Distribution Method: The IRS will send payments via direct deposit to the bank account listed on the taxpayer's 2023 return or by paper check to the address on file.
- Timeline: Eligible taxpayers should receive their payments by late January 2025.
- Notification: The IRS plans to send separate letters to eligible taxpayers notifying them of the special payment.
Action Steps:
- For Non-Filers: Individuals who have not yet filed a 2021 tax return but believe they are eligible can still claim the RRC by filing their return by April 15, 2025.
- No Further Action Needed: Eligible taxpayers who filed their 2021 returns as described will receive payments automatically and do not need to file an amended return.
These payments are part of the IRS's ongoing efforts to ensure that eligible individuals receive financial support in response to the economic challenges posed by the COVID-19 pandemic. For more information, visit the IRS website or consult with a tax professional.
For a visual explanation, you can watch the following video:
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