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Many Americans may encounter tax hikes in 2026 unless new tax cuts are enacted.
In a recent announcement, the IRS revealed that it is set to distribute $2.4 billion in “special payments” to approximately 1 million taxpayers who missed out on full federal stimulus checks during the pandemic. This initiative aims to ensure that eligible individuals receive the funds owed to them.
The amounts awarded will differ for each individual, with the maximum payment reaching up to $1,400. IRS Commissioner Danny Werfel emphasized that the process is designed to be straightforward, stating, “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic,” allowing recipients to avoid the necessity of filing an amended tax return.
Who qualifies for these payments from the IRS?
The IRS determined eligibility for these payments based on an examination of its internal records, which revealed that several individuals had submitted tax returns but had not claimed the “recovery rebate credit” in 2021. This specific credit was created for those who received less than the total amount of stimulus payments issued throughout the pandemic, which included three rounds of payments: two in 2020 and a final one in 2021.
The majority of taxpayers eligible for the stimulus payments have already received their funds, either directly or through the recovery rebate credit process.
Is an application necessary for the IRS payment?
No application is needed. The IRS will automatically distribute payments to around 1 million individuals who filed tax returns and qualified for the recovery rebate credit but did not take advantage of it. The recipients will receive a notification letter detailing their upcoming payment.
When will the IRS distribute these payments?
The IRS plans to initiate the payment dispersals in December, with the majority reaching recipients by the end of January 2025. Payments will either be directly deposited into bank accounts or mailed as a paper check.
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