In the coming weeks, the IRS will issue a special stimulus check to a small group of US taxpayers. This payment, known as the 2021 Recovery Credit, is part of the economic aid provided during the pandemic.
The American Rescue Plan provided millions of households with up to $1,400 per person, plus an additional $1,400 for each qualifying dependent child, as of March 2021.
However, the IRS recently discovered that approximately one million people did not claim this credit or received less than what they were entitled to. To address this issue, pending payments are currently being sent.
Who will receive this stimulus check?
Although most eligible taxpayers have already received the so-called Economic Impact Payments, the IRS has identified instances where the credit was not properly claimed. This includes individuals who:
- Filed their 2021 tax return but left the Recovery Credit section blank.
- Entered an amount of $0 in that field, even though they met the requirements to receive the payment.
If you fall into any of these categories, the IRS may owe you this money.
How much money will beneficiaries receive?
The amount of the check varies by case, but the maximum is $1,400 per person. If you have qualifying dependent children, you may be eligible for additional benefits for each one.
It is important to note that the payment requires no further action from the taxpayer. The IRS will calculate and send the amount automatically.
How will the money arrive?
The IRS processes these payments automatically. Taxpayers will receive the funds through:
The IRS is processing these payments automatically. Taxpayers will receive the money through:
- Direct deposit: If you provided your bank account information on your most recent tax return, the money will be sent directly there.
- Physical check: If you did not register a bank account, the IRS will send a check to the address it has on file.
The money should arrive before the end of the month, so it’s a good idea to keep an eye on your bank account or mail.
No procedures are necessary
One of the most important points is that beneficiaries are not required to do anything to receive this check. The IRS will automatically review 2021 tax returns and process the associated payments.
If you are unsure whether you qualify, you should review your tax return for the relevant year. If you left the Recovery Credit box blank or did not claim it correctly, you may be on the list of beneficiaries.
This stimulus check provides an opportunity to correct mistakes and ensure that taxpayers receive what they are entitled to.
Although the number of beneficiaries is small in comparison to the millions who have already received their payments, those who do receive them can benefit significantly financially.
If you believe you may be eligible, check your bank account or wait for a check to arrive. Remember that you do not need to complete any additional procedures. The IRS is handling everything automatically.
This process emphasizes the importance of carefully reviewing tax returns. A minor oversight can result in the loss of valuable benefits, but in this case, the IRS is making the necessary adjustments.
