IRS to Automatically Issue Stimulus Checks to Eligible Taxpayers: Recovery Rebate Credit Payments Coming by end of January.

U.S. taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns could see a stimulus check by the end of January, according to the Internal Revenue Service (IRS). This initiative comes after the IRS identified that eligible taxpayers failed to claim the credit, despite being eligible.

The Recovery Rebate Credit is designed as a "refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP)," commonly known as stimulus payments. IRS Commissioner Danny Werfel explained, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. 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.”

Eligible taxpayers do not need to take any action to receive their payments, which will be distributed either by direct deposit or paper checks by the end of January. In addition, recipients will receive a letter informing them of their upcoming stimulus payment.

For taxpayers who filed their 2021 returns but missed claiming the credit, the IRS aims to distribute a total of $2.4 billion in payments, with a maximum sum of $1,400 per eligible taxpayer. Those who didn’t file a return in 2021 can still claim the Recovery Rebate Credit by submitting their 2021 return before April 15, 2025. The IRS emphasized that “eligible taxpayers who did not file are required to submit a tax return to claim the Recovery Rebate Credit, regardless of whether their income from employment, business, or other sources was low or absent.”

The Recovery Rebate Credit Payments were a crucial component of the U.S. government's financial response to the COVID-19 pandemic, providing direct economic relief to individuals and families who were affected by the economic downturn. These payments were designed to support Americans during an incredibly challenging time, helping to offset financial losses from unemployment, business closures, and other pandemic-related disruptions.

One of the most significant benefits of the Recovery Rebate Credit was its accessibility. It ensured that individuals who had not received their full Economic Impact Payments (stimulus checks) could still claim the credit when they filed their taxes. This made the process more inclusive, addressing gaps that could have left certain taxpayers without support. The automatic nature of some of these payments, as announced by the IRS in 2025, also provided relief to those who overlooked claiming the credit, minimizing the administrative burden for individuals.

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