Unclaimed COVID Relief: IRS to Send $1,400 to 1 Million Taxpayers

In a surprising turn of events, the Internal Revenue Service (IRS) has announced that it will be sending special payments of up to $1,400 to approximately 1 million taxpayers who missed out on COVID-19 relief payments. If you're wondering if you're one of the eligible recipients, read on to find out more about this unexpected cash influx.



The IRS discovered that many eligible taxpayers had overlooked claiming the Recovery Rebate Credit on their 2021 tax returns. This credit is designed for those who missed one of the COVID stimulus payments or received less than the full amount. By analyzing internal data, the IRS realized that around 1 million taxpayers had failed to claim this complex credit when they were actually eligible.

So, what's the likelihood that you'll receive a check? Unfortunately, it's probably pretty low. The IRS has already distributed most of the federal stimulus payments, formally known as Economic Impact Payments. The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or filled it out as $0 when they were actually eligible for the credit.

Eligible taxpayers don't have to take any action. The payments will go out automatically this month and should arrive by direct deposit or check by late January 2025. They'll be sent to the bank account listed on the taxpayer's 2023 return or to the address IRS has on file. Payments will vary, but the maximum amount will be $1,400 per individual. The IRS has posted information online about eligibility and how the payment was calculated.

If you haven't filed your 2021 tax return yet, you still might be able to receive the money. However, taxpayers need to file a tax 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.

There were three rounds of payments to households impacted by the pandemic, totaling $814 billion. The IRS based the amounts that taxpayers received on their income, tax filing status, and number of children or qualifying dependents. In March 2020, eligible individuals received up to $1,200 per income tax filer and $500 per child under the CARES Act. In December 2020, eligible individuals received up to $600 per income tax filer and $600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act.

In conclusion, if you're one of the 1 million taxpayers who missed out on COVID-19 relief payments, you may soon receive a special payment of up to $1,400 from the IRS. Keep an eye on your mail and bank account for this unexpected cash influx, and make sure to file your 2021 tax return if you haven't already.