One million taxpayers will soon receive up to $1,400 from the IRS. Who are they and why now?

About 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the coming weeks. The money will be directly deposited into eligible people’s bank accounts or mailed via paper check.

The IRS said it is distributing about $2.4 billion to taxpayers who did not claim a recovery rebate credit on their 2021 tax return. People who missed any of the stimulus payments COVID or who received less than the full amount were able to claim the credit. But the IRS said Friday it found many eligible taxpayers had not done so.

“By reviewing our internal data, we realized that a million taxpayers neglected to apply for this complex credit even though they were actually eligible for it” IRS Commissioner Danny Werfel said in a statement.

Here’s more information about the unexpected money this group of taxpayers will soon receive:

How likely is it that I will receive a check?

Sorry, that’s probably pretty low. The IRS said most taxpayers eligible for federal stimulus payments, officially known as economic impact payments, have already received them.

The special payments announced by the IRS are being sent to taxpayers who filed a 2021 tax return but left the Recovery Rebate Credit data field blank or filled it out at $0 while they were actually eligible for credit.

How will this work?

Eligible taxpayers do not need to take any action. Payments will be made automatically this month and are expected to arrive by direct deposit or check by the end of January 2025. They will be sent to the bank account listed on the taxpayer’s 2023 return or to the address on file with the IRS.

Payments will vary, but the maximum amount will be $1,400 per person. The IRS has posted information online about eligibility and how the payment was calculated.

The IRS plans to send separate letters to eligible taxpayers to notify them of the special payment.

What should I do if I haven’t filed my 2021 tax return yet?

You may still be able to receive the money. However, taxpayers must file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if income from a job, business or other source was minimal or non-existent, according to the IRS.

How many rounds of COVID stimulus payments have there been?

There have been three rounds of payments to households affected by the pandemic, totaling $814 billion. The IRS based the amounts taxpayers received on their income, tax filing status and the number of eligible children or dependents.

In March 2020, eligible individuals received up to $1,200 per filer and $500 per child under the CARES Act. As of December 2020, eligible individuals received up to $600 per filer and $600 per child under the Consolidated Appropriations Act. As of March 2021, eligible individuals received up to $1,400 per filer and $1,400 per child under the American Rescue Plan Act.

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