During the COVID-19 pandemic, Congress passed three bills that included stimulus checks, formally known as Economic Impact Payments.
The three payments, which totaled more than $3,000 per person, were sent to millions of eligible Americans by the Internal Revenue Service. The last of these payments were sent out in March 2021.
Recent search trends show that “unclaimed irs stimulus checks” is spiking online in late December, with some people wondering if the IRS is sending out another round of payments.
THE QUESTION
Is the IRS sending out unclaimed stimulus payments?
THE SOURCES
THE ANSWER
Yes, the IRS is sending out unclaimed stimulus payments.
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WHAT WE FOUND
Approximately 1 million taxpayers will automatically receive unclaimed stimulus payments of up to $1,400 from the IRS in the coming weeks. No action is required to receive these special payments — the money will be directly deposited into eligible people’s bank accounts or sent as a paper check in the mail, which should arrive by the end of January 2025.
Most taxpayers eligible for the federal stimulus payments have already received them, according to the IRS. The agency sent the payments out automatically, and people who didn’t receive them could claim a tax rebate called the Recovery Rebate Credit on their 2021 tax returns.
On Dec. 20, the IRS announced it’s issuing automatic payments to the 1 million eligible taxpayers who failed to claim the Recovery Rebate Credit on their 2021 returns. The Recovery Rebate Credit is a refundable credit for people who didn’t receive one or more stimulus payments during the COVID-19 pandemic.
A review of internal IRS data revealed that approximately 1 million eligible taxpayers who filed their 2021 tax returns did not claim the Recovery Rebate Credit. The IRS says these special stimulus payments are being sent to people who left the data field for the credit blank or filled it out as $0 when they were actually eligible for the credit.
“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.
No action is needed for eligible taxpayers to receive these special payments, which will go out automatically via direct deposit or paper check in December and should arrive by late January 2025, according to the IRS. The payments vary depending on several factors, but the maximum payment is $1,400 per person. The IRS said it plans to send separate letters to eligible taxpayers notifying them of the special payment.
“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,” Werfel said.
Taxpayers who have not filed their 2021 tax returns might also be eligible to receive the unclaimed stimulus payment of up to $1,400, the IRS said. Those taxpayers must file their 2021 returns by the April 15, 2025, deadline to claim the Recovery Rebate Credit and any other refund they might be owed.
If you have questions about your eligibility and how the payment was calculated, visit IRS.gov.
The Associated Press contributed to this report.