IRS to Distribute $2.4 Billion in Stimulus Payments to 1 Million Americans
The IRS has announced that it will distribute a total of $2.4 billion in “special payments” to approximately 1 million people. This initiative aims to ensure that Americans who missed out on receiving their full federal stimulus payments during the pandemic will finally receive the money they are owed.
Payment Details
The payment amounts will vary by recipient, with a maximum of $1,400 per person. According to a statement from IRS Commissioner Danny Werfel, the process has been simplified to reduce complications.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” Werfel said.
Who is Eligible for the Payment?
The IRS identified eligible recipients by analyzing tax filings and found that many people who filed returns didn’t claim the “recovery rebate credit” in 2021.
The recovery rebate credit was established to help individuals who didn’t receive all or part of their stimulus checks during the pandemic. Lawmakers approved three rounds of stimulus payments—two in 2020 and one in 2021.
Most eligible taxpayers have already received these payments directly or through the recovery rebate credit on their tax returns. However, this new round of payments is targeted at those who may have missed out.
Do You Need to Apply?
No action is required to receive this payment. The IRS will automatically send the funds to eligible individuals. Additionally, recipients will receive a letter from the agency confirming their eligibility and payment details.
When Will the Payments Arrive?
The IRS stated that the payments will begin distribution in December 2024, with most recipients expected to receive their money by late January 2025.
Payments will be sent either as a direct deposit to the recipient’s bank account or as a paper check delivered by mail.
Final Thoughts
This initiative by the IRS serves as a crucial step to ensure financial equity for those who missed out on the pandemic stimulus payments. If you’re eligible, keep an eye out for a notification letter and check your bank account or mailbox for the payment in the coming months.
For more updates and financial tips, visit MoneyWis.