The Internal Revenue Service (IRS) announced that approximately one million taxpayers may receive automatic IRS payments connected to unclaimed Recovery Rebate Credits from their 2021 tax returns.
These payments are separate from standard tax refunds. Instead, they relate to stimulus-related credits that some eligible taxpayers may not have claimed properly when filing their 2021 returns.
According to the IRS, eligible individuals could potentially receive:
- Up to $1,400 per individual
- Up to $2,800 for married couples filing jointly
The agency stated that internal reviews revealed many taxpayers who qualified for the credit may have overlooked claiming it.*
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was created for individuals who did not receive the full amount of the federal stimulus payments issued during the COVID-19 pandemic.
Some taxpayers may still qualify if they:
- Did not receive their full stimulus payment
- Received less than they qualified for
- Failed to properly claim the credit on a 2021 return
The IRS has indicated that many eligible payments are being issued automatically based on its review of previous filings.
Who May Qualify?
According to IRS guidance, eligibility is based largely on adjusted gross income (AGI).
The IRS stated that:
- Individuals with AGI up to $75,000 may qualify for the full amount.
- Married couples filing jointly with AGI up to $150,000 may qualify for the full amount.
For incomes above those thresholds:
- The payment amount may gradually decrease.
- Eligibility phases out completely at:
- $80,000 AGI for individuals
- $160,000 AGI for married couples filing jointly
Payment amounts may vary depending on filing status and income.
How Will the IRS Payment Be Sent?
The IRS indicated that payments are expected to be distributed automatically.
Payments may be sent by:
- Direct deposit using information from a recent tax return
- Paper checks mailed to the address on file
According to reports, many eligible taxpayers were expected to receive payments by late January.*
What if You Haven’t Filed a 2021 Tax Return?
Some individuals who did not file a 2021 tax return may still potentially qualify for the credit.
According to the IRS, individuals who did not file a 2021 tax return may still need to file one to claim the credit, even if they had little or no income that year.
Additional information can be found on the IRS website.
Watch Out for IRS Scams
Announcements involving stimulus payments or tax credits often lead to an increase in scam attempts.
Consumers should remain cautious of:
- Unexpected calls claiming to be from the IRS
- Emails requesting sensitive information
- Text messages about claiming stimulus funds
- Requests for upfront payments
The IRS generally does not initiate contact through unsolicited texts, social media messages, or threatening phone calls demanding immediate action.
The Bottom Line
The IRS is issuing automatic Recovery Rebate Credit payments to many taxpayers who may have overlooked stimulus-related credits tied to their 2021 tax returns.
Eligible individuals may receive an IRS payment of up to $1,400 per person, depending on income and filing status. Reviewing IRS guidance or consulting a qualified tax professional may help clarify eligibility.
Source: CNBC
