IRS will be paying $1,400 to almost a million Americans — here’s how to check if you're eligible

The Internal Revenue Service is about to make the holidays better for about one million Americans. Eligible taxpayers are set to receive a "special" year-end gift as the agency will disburse the pending Covid 19 stimulus checks worth a total of $2.4 billion to their bank accounts. The checks could amount to as much as $1,400, for those who failed to claim the Recovery Rebate Credit on their 2021 tax returns. 

Who is eligible for "special payments?"

The stimulus checks are part of the American Rescue Plan Act of 2021, which issued payments to provide financial relief during the COVID-19 pandemic. Known as the Recovery Rebate Credit, Americans received three stimulus payments from the federal government. The payment could also be claimed under a tax return. 

The first check totaled $1,200 for eligible taxpayers, the second $600, and the third $1,400. While most Americans received checks those who didn't get the full amount could file for the rebate credit.

However, many taxpayers who filed a 2021 tax return failed to claim the rebate by either leaving the Recovery Rebate Credit section blank or by filling it out incorrectly. "Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible," IRS Commissioner Danny Werfel said in a statement.

The eligible taxpayers will receive the payment automatically. The IRS has clarified that no action is required for eligible taxpayers to receive these payments, as they will go automatically into their bank accounts. Taxpayers can expect the payments to be issued in December and they should arrive in most cases by late January 2025, as per the official website.

In case eligible taxpayers have closed their bank accounts after filing their 2023 tax return, they do not need to take any extra steps to receive the rebate. In such cases, the issued rebate will be returned to the IRS by the bank and the agency will issue a paper check to the address of record, of the taxpayer.

All eligible taxpayers will also receive a separate letter notifying them of the payment. “These payments are an example of our commitment to go the extra mile for taxpayers," Werfel said.

"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," he added in the statement. 

According to the IRS, the payments will vary depending on several factors. However, the maximum payment will be $1,400 per individual taxpayer. To calculate the amount of the rebate, individuals can log in to their online IRS Account and check the Economic Impact Payment(s) section. 

Apart from the rebate notification, the IRS also reminded taxpayers who are yet to file 2021 tax returns, to do so before the April 15, 2025 deadline.  Every eligible taxpayer must file their returns even if their income was minimal or non-existent, to claim the Recovery Rebate.