For what could be the first time in your life, the Internal Revenue Service (IRS) may be about to send you an unexpected Christmas present.
The IRS is currently issuing payments of up to $1,400 to about one million taxpayers who qualified for COVID-19 stimulus checks in 2021.
The agency is sending these payments to individuals who failed to claim their checks, which are otherwise known as Recovery Rebate Credit.
This credit, which was initially designed to be claimed directly by taxpayers, provided a way for people to access missed Economic Impact Payments (or stimulus checks).
However, you should now be able to claim the money you are entitled to.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a press release.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”
You should be eligible for this stimulus check if you meet the following criteria:
Single filers: Those with a 2021 adjusted gross income (AGI) I of $75,000 or less qualify for the full $1,400. The credit decreases for incomes above $75,000 and ends at $80,000.
Married filing jointly: Couples with a combined AGI of $150,000 or less in 2021 are eligible for $2,800. The credit reduces for incomes above $150,000 and is ends at $160,000.
Dependents: Families can receive $1,400 for each dependent claimed in 2021, regardless of their age. However, the same income limits and phaseout rules apply to the filer.
The IRS says that most of these payments should arrive by late January 2025 at the latest.
All of the payments will be going out automatically sent out via direct deposit or paper check, while those eligible will also receive a letter notifying them of the payment.
Additionally, those who have not yet filed their 2021 tax returns may also be eligible for a refund if they claim the Recovery Rebate Credit by the April 15th deadline.
While America faces many economic challenges, it is your right as a citizen to claim back as many tax dollars as you are entitled.
