IRS to Distribute Unclaimed Stimulus Checks to Eligible Taxpayers
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The IRS is currently sending out unclaimed stimulus checks to approximately 1 million taxpayers. These payments are part of the Recovery Rebate Credit, which was a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments, during the COVID-19 pandemic.The maximum payment is $1,400 per individual, and the total amount being distributed is about $2.4 billion. These payments are being issued automatically, meaning eligible taxpayers do not need to take any action to receive them. The payments will be sent via direct deposit to the bank account listed on the taxpayer's 2023 return or by paper check to the address on file with the IRS. Most of these payments are expected to be delivered by late January 2025.Eligible taxpayers are those who filed a 2021 tax return but did not claim the Recovery Rebate Credit on their return or mistakenly claimed $0 for the credit when they were actually eligible. The IRS discovered that many eligible taxpayers overlooked claiming this credit, prompting the automatic issuance of these payments.For those who did not file a 2021 tax return, the deadline to file and claim the Recovery Rebate Credit is April 15, 2025. Filing a return is necessary even if the taxpayer had minimal or no income for the year.The IRS will also send separate letters to the taxpayers receiving these payments to notify them of the payment. If the bank account listed on the 2023 return is closed, the payment will be reissued to the taxpayer's address of record.