The IRS is distributing $2.4 billion in “special payments” to approximately 1 million individuals to address missed federal stimulus payments from the pandemic. This initiative aims to ensure that eligible taxpayers receive any remaining funds they were owed.
Key Details about the Payments
These payments, which will vary by recipient, have a maximum amount of $1,400. They are tied to the three rounds of stimulus checks issued during the pandemic: two in 2020 and one in 2021. The recovery rebate credit was designed for individuals who didn’t receive all or some of the stimulus payments when they were initially distributed.
According to the IRS, most eligible taxpayers have already received their stimulus money, either directly or by claiming the recovery rebate credit when filing their tax returns. However, this latest effort addresses cases where some individuals qualified for the credit but did not claim it.
How and When Payments will be sent
The IRS will automatically distribute the payments, eliminating the need for recipients to take any action, such as filing an amended tax return. Payments will be either direct deposited into bank accounts or sent via paper check by mail.
The IRS will also notify recipients with a letter confirming the payment. The distribution of payments will begin in December 2024, with most checks expected to arrive by late January 2025.
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