Who Qualifies for the $1,400 IRS Stimulus Checks? Details Explained

As the holiday season comes to a close, the Internal Revenue Service (IRS) is gearing up to issue a financial boost to nearly one million taxpayers. The IRS announced that approximately $2.4 billion in stimulus payments will be distributed in the coming weeks.

Automatic Payments for Eligible Taxpayers

The payments are being issued automatically to taxpayers who qualified for, but did not claim, the Recovery Rebate Credit (RRC) on their 2021 tax returns. The IRS discovered this oversight during a review of its internal data.

“After analyzing our records, we found that about one million taxpayers missed claiming this complex credit, even though they were eligible,” IRS Commissioner Danney Werfel said. “To simplify the process and ensure they receive this money, we’re issuing these payments automatically. Eligible taxpayers won’t need to file an amended return or take any additional steps.”

The payments will be sent via direct deposit or mailed as paper checks, with all funds expected to be delivered by late January.

What Is the Recovery Rebate Credit?

The Recovery Rebate Credit is a refundable tax credit designed for individuals who missed out on one or more Economic Impact Payments (stimulus payments) issued during the COVID-19 pandemic. Only those who failed to claim the RRC on their 2021 tax return—or have not yet filed for 2021—are eligible for these special payments.

The IRS issued three rounds of stimulus payments during the pandemic, meaning most eligible individuals have already received their payments. However, this new batch of payments is specifically for those who overlooked the RRC.

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Who Is Eligible for These Payments?

Eligibility is limited to taxpayers who meet the following criteria:

1. Filed a 2021 tax return but did not claim the Recovery Rebate Credit or entered $0 for the credit despite being eligible.
2. Have not yet filed a 2021 tax return but are eligible for the RRC.

Taxpayers who haven’t filed for 2021 can still claim the RRC by submitting their return by April 15, 2025. Even those with minimal or no income are encouraged to file to receive any eligible payments.

How Much Money Can You Receive?

The maximum payment amount is $1,400 per person, but the exact amount will depend on individual circumstances. Payments will be deposited into the bank account listed on the taxpayer’s 2023 tax return or sent to the address on record.

For questions about eligibility, payment calculations, or additional details, taxpayers are encouraged to visit the IRS website.

This initiative aims to provide much-needed financial relief to those who may have missed out on previous benefits.