IRS Sending Out $1,400 Payments: Recovery Rebate Credit

The IRS announced it is using internal data to identify taxpayers who filed a 2021 tax return but did not claim the Recovery Rebate Credit (worth up to $1,400). The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments.

The IRS will automatically send the payment to eligible taxpayers. It is estimated that by the end of January, approximately 1 million taxpayers will receive payments.

The IRS has sent letters to eligible taxpayers, notifying them of the special payment, and that the payment should arrive by direct deposit or check by late January. Payments will be sent automatically to eligible taxpayers to the bank account listed on their 2023 return or the address the IRS has on file.

Taxpayers who did NOT file a 2021 tax return can still claim the payment by filing a late 2021 return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to the IRS. Go to https://www.irs.gov/newsroom/recovery-rebate-credit for more information.