In December, the Internal Revenue Service (IRS) initiated a significant disbursement of funds, delivering $2.4 billion in “special payments” to approximately 1 million Americans. This initiative targets individuals who did not receive their full federal stimulus checks during the pandemic. Most eligible individuals have already obtained their Recovery Rebate Credit, but there remains an opportunity for those who have not claimed theirs yet.

As the April 15 deadline approaches, here is what you need to know about this critical financial assistance.

Understanding the $1,400 Recovery Rebate Credit

The Recovery Rebate Credit is specifically designed for taxpayers who missed out on some or all of the stimulus payments issued in response to the COVID-19 pandemic. The government authorized three rounds of stimulus payments, two of which were distributed in 2020, followed by a third in 2021.

These payments were initiated to ensure that individuals who were eligible received the financial support intended for them, especially after the IRS identified many taxpayers who, although they filed tax returns, had not claimed the Recovery Rebate Credit. It’s important to note that the maximum payment can amount to $1,400 per eligible recipient.

Eligibility for IRS Payments

While many taxpayers have already received their payments either directly or as part of filing for the Recovery Rebate Credit, there are still eligible non-filers who can claim the credit before the upcoming deadline. The following criteria must be met to qualify for the payment:

• You are a legal resident of the United States.
• You or a dependent you are claiming must possess a valid Social Security Number or Adoption Taxpayer Identification Number issued by the IRS.
• You cannot be claimed as a dependent on another taxpayer’s 2021 return.

For further details on eligibility requirements, please refer to the IRS website.

How to Claim Your Payment

If you have yet to receive your payment, you must take action. Eligible non-filers need to file a tax return for 2021 to claim the Recovery Rebate Credit. This must be done by April 15, 2025, even if your income for that year was minimal or non-existent. Detailed instructions on claiming the credit can be found here.

Timing of Payments

The IRS has stated that the payments will primarily be distributed in December, with the expectation that most recipients will receive their funds by late January 2025. Payments may be directly deposited into bank accounts or sent via paper checks through the mail.