The United States Internal Revenue Service (IRS) recently announced plans to distribute unclaimed stimulus payments to approximately one million taxpayers, starting later this month.
These payments, which are part of the 2021 Recovery Rebate Credit, will be issued automatically and are expected to reach eligible individuals in late January.
“The IRS announced the special measure after reviewing internal data showing that many eligible taxpayers filed a return but did not claim the credit,” the agency said in a press release.
Eligible taxpayers can receive up to $1,400, with a total of $2.4 billion to be distributed to those who didn't get the credit.
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Eligibility for the 2021 Recovery Rebate Credit
The 2021 Recovery Rebate Credit was designed for people who did not receive a third stimulus check issued by the federal government following shutdowns caused by the coronavirus pandemic.
1. Individuals who did not claim the credit
Those who were eligible for the credit but did not claim it on their 2021 tax returns will receive a payment from the IRS within the next month.
2. Single taxpayers
Single taxpayers who did not claim any dependents on their 2021 tax returns and earned less than $80,000 in that year qualify for at least part, if not all, of the $1,400 payment.
3. Married taxpayers
For married taxpayers filing jointly, your combined income must have been less than $160,000 to qualify for some or all of the tax credit. Additionally, people who filed as head of household and earned less than $112,500 are also eligible.
However, it is important to note that if you were claimed as a dependent in 2021, you do not qualify for this special payment from the IRS.
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