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If you are a taxpayer in New York and did not receive a Recovery Rebate Credit stimulus payment in 2021, you might still be in line for one by the end of January.
Recently, the Internal Revenue Service (IRS) revealed plans to distribute automatic payments to qualifying taxpayers who missed claiming this credit on their 2021 tax filings.
IRS Commissioner Danny Werfel mentioned, “Our analysis indicated that a significant number of taxpayers, approximately one million, missed out on this complex credit despite being eligible. To alleviate the burden of filing amended returns, we are proceeding with automatic payments.”
Here’s what you should know regarding these stimulus checks.
The Recovery Rebate Credit serves as a refundable credit designed for those who did not receive Economic Impact Payments—commonly known as stimulus payments. If you submitted your 2021 tax return but neglected to enter a value in the Recovery Rebate Credit section or mistakenly recorded it as $0, you might soon receive a stimulus payment.
While the amounts may differ, the IRS states that the maximum individual payment can reach $1,400, contributing to a nationwide total of about $2.4 billion in disbursed funds.
Since these payments are being issued automatically, no further action is necessary on your side to obtain your check, according to IRS guidelines.
Most payments were disbursed in December and should be credited directly to the bank account linked to your 2023 tax filings or sent as a paper check to your registered mailing address by late January 2025. Eligible recipients will also receive a notification letter detailing the payment.
Potential for more financial relief: Recent proposals indicate that New York taxpayers might receive additional refund checks of up to $500 under a new plan by Governor Hochul.
You still have the opportunity to claim the Recovery Rebate Credit if you file your 2021 tax return by April 15, 2025.
Source
finance.yahoo.com