Each of 1 Million US Taxpayers to Receive Up to $1.4K Late COVID Credit Claims from IRS: Are You Eligible?

Eligible taxpayers will automatically receive the payment via direct deposit or check.

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New York City field office for the IRS Matthew G. Bisanz / Wikimedia Commons

You could be receiving up to $1,400 from the Internal Revenue Service after it announced sending out special payments to around 1 million American taxpayers.

These payments were supposed to be sent years ago as it included in a $2.4 billion disbursal to people who did not report a Recovery Rebate Credit on their 2021 tax returns. These credits were accessible to taxpayers who either did not receive one of the COVID-19 stimulus payments or took less than the full stimulus amount. In this aspect, the IRS found several eligible taxpayers failed to claim this credit and is taking this move.

For those eligible, AP News reported that these payments will be automatically issued. In the coming weeks, this means you will receive funds either through direct deposit or by paper check and all information provided in the 2021 tax returns will be used.

The special payments are, however being sent to those who either left the credit field blank or incorrectly reported it as $0.

How US Taxpayers Can Get Their $1,400 from the IRS

To clarify, the 1 million US taxpayers won't have to do anything to get the payment. According to NPR, for most, the payment will be deposited directly into a bank account listed on their 2023 return. Alternatively, the IRS will also mail a check to the address the IRS has on file.

On how much each will get in this program, a taxpayer can only get up to $1,400, but their amount would depend on eligibility.

No need to worry if you haven't filed your 2021 tax return yet because this money can still be received in that case. Recovery Rebate Credit will be claimed if one files his or her tax return and does so before April 15, 2025. The IRS encourages all eligible taxpayers to file before the deadline to take home the benefit.

To date, the IRS has made three rounds of stimulus. The third round under the American Rescue Plan Act had an amount of up to $1,400 per individual.

The stimulus round that was recently approved would help people who were not paid or less paid in previous rounds.

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