The Internal Revenue Service (IRS) has announced it will issue up to $1,400 in credits to over one million Americans who did not receive federal pandemic stimulus payments (EIP) during the COVID-19 emergency. According to the IRS, eligible taxpayers who failed to claim the Recovery Rebate Credit (RRC), also known as the stimulus check, will receive these credits automatically by late January, without any additional application process.

In a press release, the IRS revealed that over one million taxpayers failed to claim the RRC during their 2021 tax filings. The agency plans to distribute a total of $2.4 billion, with payments beginning in late December and concluding by late January.

The funds will be deposited directly into the bank accounts listed in the 2023 tax filings. If an account is closed and the deposit is returned, the IRS will issue a check to the registered address. Once the process is completed, the IRS will send notification letters to recipients. This credit applies both to taxpayers who did not receive any stimulus payments and to those who received less than the eligible amount.

Taxpayers can verify their eligibility by reviewing their 2021 tax filings or by logging into their IRS online account to check their tax records. They can also contact the IRS directly to confirm whether the RRC was claimed on their 2021 return. For those who have not yet filed their 2021 taxes, the IRS urges submission by April 15, 2024, to potentially qualify for the Recovery Rebate Credit. Eligible taxpayers must file a tax return to claim the credit, even if they have minimal or no income from employment, business, or other sources.

Danny Werfel, the IRS Commissioner, stated, “The IRS remains committed to improving services and assisting taxpayers to the best of our ability. This Recovery Rebate Credit distribution exemplifies our dedication to taxpayer support.” He added, “Internal data shows over one million taxpayers missed claiming this complex tax credit. By automating the payment process, we aim to simplify the system so taxpayers can receive their credits without the need for amended returns.”

Additionally, the IRS confirmed that the Recovery Rebate Credit does not count as taxable income and will not affect eligibility for federal assistance programs, such as Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and Women, Infants, and Children (WIC).

By Hwang Eui-Kyung

<Hwang, Eui-kyung>