The International Revenue Service is ready to clear the unclaimed Recovery Rebate Credit by sending check payments to the taxpayers. According to the IRS, taxpayers are going to receive checks worth around $2.4 billion in the upcoming weeks. After reviewing the data, the IRS discovered many taxpayers hadn’t claimed the recovery rebate credit after filing the return in 2021. Thus, the service will issue special automatic payments to clear the unclaimed credit. This article brings you all the details about the IRS stimulus checks, including the eligibility as well as the process and time of receiving money.
IRS Stimulus Checks: What Exactly Is Recovery Rebate Credit?
The recovery rebate credit, according to the IRS, is a refundable credit for those individuals who haven’t received the Economic Impact Payments. These payments are more commonly known as the stimulus payments. The IRS has already issued stimulus payments three times during the course of the COVID-19 pandemic. Hence, it is possible that most taxpayers have already received the payment and won’t be eligible to claim RRC.
How Does RRC Work?
The RRC, when claimed through a tax return, provides up to $1400 per individual. The credit depends on the gross income of the individual and phases out at levels of income that are high. Return filers who are single will receive full payment if their AGI in 2021 was or below $75,000. The payment phases out at $80,000. Return filers who are married will receive full payment for both individuals if the AGI in 2021 was or below $150,000. The payment phases out at $160,000. The families of return filers who are dependent will receive full payment according to the income phaseout limits.
Who is eligible for $1,400 IRS stimulus checks?
Most taxpayers have already received the stimulus payments for the Recovery Rebate Credit when the IRS issued stimulus payments three times during the course of the pandemic. However, the taxpayers who filed their returns in the year 2021 are eligible to receive the credits. Return filers who haven’t filed their returns yet are also eligible for payment if they file the return in time. The taxpayers who left the data field for RRC empty or filled out $0 when they were eligible will receive the payment.
What To Do For Receiving The Payment?
The filers of the tax returns who qualify to receive the payment won’t have to do anything to receive it. The International Revenue Service will be making automatic payments to those eligible. The taxpayers will receive the payment directly into their bank accounts or will receive checks through their mail. According to Danny Werfel, the commissioner of the IRS these payments are made automatically to reduce headaches. Hence, no taxpayers will have to go through extensive processes to claim their RRC. The taxpayers need not take any action to receive the payment.
When Will The Taxpayers Receive The $1,400 IRS Stimulus Checks?
According to the IRS, it will send the automatic RRC stimulus payment into the accounts of qualified individuals in December. Most of the qualified individuals will receive the payment for the Recovery Rebate Credit by the end of January. This means that the start of the year will get a bit easier financially. These payments will benefit especially those who have a lot of expenses piled up in the first month of the upcoming year.
How Will You Receive The IRS Stimulus Checks Payment?
As explained earlier, these “special” stimulus payments are automatic. This means that the qualified individuals will receive the payments directly into their bank accounts. If not through the bank accounts, you can receive the payment through the mail in the form of a check. This will definitely reduce the headache for both the tax agency as well as the qualified taxpayers. It will not only save time but also the money that both parties would have spent on the long credit-claiming processes.
Time To File The Return
Those who have not yet filed the return for the financial year 2021 can still do so. If the taxpayers manage to file the return on time they can still claim RRC by the 15th of April 2025. The agency, in its release, mentioned that eligible taxpayers must file their returns to claim RRC. The agency also mentioned that the magnitude of income does not matter. Hence, the candidates must file a return no matter how small or non-existent their income is from their job or business. The individuals will also have to file a return if their source of income is something other than their jobs or businesses.
IRS Stimulus Checks: Conclusion
The International Revenue Service has officially announced that it will be making automatic payments for the clearance of unclaimed RRC. The taxpayers who have not claimed their RRC for the year 2021 will be eligible to receive the payments. The individuals who have not paid the tax yet can still do so and claim the RRC by April. The qualified taxpayers will receive the payments directly in their bank accounts or through mail by check. The taxpayers will not have to do anything to receive the payments, making the process hassle-free. Those who are eligible will receive the payment by the end of January.
