The IRS is rolling out a major update this March, and it could mean money in your pocket—literally. Around 1 million Americans will receive up to $1,400 each through a special Recovery Rebate Credit adjustment. This comes after the IRS found that many eligible taxpayers either skipped the credit or mistakenly reported $0 on their 2021 tax return. If that’s you—or you haven’t filed yet—this is your chance to catch up and get what you’re owed.
Overview
Let’s break it down with a quick summary of what’s happening:
| Detail | Information |
|---|---|
| Total Payment Amount | Up to $1,400 per taxpayer |
| Number of Recipients | Approximately 1 million |
| Total Distributed | $2.4 billion |
| Deadline to Claim (If Not Filed Yet) | April 15, 2025 |
| How Payments Are Sent | Direct deposit or paper check |
| Eligibility Requirements | Taxpayers who left Recovery Rebate Credit blank or entered $0 |
This initiative is the IRS’s way of making sure no one misses out on financial relief just because of a filing error or misunderstanding.
Reason
These payments are tied to the 2021 Recovery Rebate Credit, which was designed to help people who didn’t receive their full third-round stimulus checks during the pandemic. When reviewing 2021 returns, the IRS noticed that around a million eligible taxpayers didn’t claim the credit—even though they qualified. So now, the IRS is stepping in to fix it.
If you’re one of these taxpayers, you could see the money land in your account (or mailbox) as early as late January 2025.
Eligibility
Wondering if you qualify for this payment? Here’s how it works:
- You filed a 2021 tax return.
- You were eligible for the Recovery Rebate Credit but didn’t claim it.
- The IRS verified your eligibility using their records.
- You didn’t receive the full third-round stimulus check.
Even if you never filed your 2021 return but were eligible, there’s still hope—you have until April 15, 2025, to file and claim it.
Amount
The amount you get depends on your family situation. Here’s a simple breakdown:
| Scenario | Payment Amount |
|---|---|
| Single filer with no dependents | $1,400 |
| Married couple with no dependents | $2,800 |
| Married couple with two dependents | $5,600 |
Basically, it’s $1,400 per eligible person, including dependents.
Delivery
The IRS is sending out these payments automatically. If you’ve filed a recent return with a bank account on file, you’ll get direct deposit. If not, expect a paper check in the mail. On top of that, the IRS will send a letter explaining the payment details—so don’t toss that envelope.
Latefilers
Still haven’t filed your 2021 taxes? No worries. There’s still time to fix that. Just follow these steps:
- File your 2021 tax return as soon as possible.
- Be sure to claim the 2021 Recovery Rebate Credit.
- Make sure it’s done by the deadline—April 15, 2025.
Even if you didn’t make much (or any) income that year, it’s worth filing. You might still qualify.
Why
So how did this all happen? In short, confusion. The Recovery Rebate Credit was tied to the third stimulus payment, and a lot of people either didn’t realize they qualified or made errors while filling out the forms. According to the IRS, many left the field blank or reported a $0 amount by mistake.
IRS Commissioner Danny Werfel explained that the agency spotted the issue while analyzing tax data. And now, they’re doing what they can to correct it.
Recap
Here’s a quick refresh on the COVID-era stimulus payments:
| Round | Date | Amount | Law |
|---|---|---|---|
| First | March 2020 | $1,200/adult, $500/child | CARES Act |
| Second | December 2020 | $600/adult and child | Consolidated Appropriations Act |
| Third | March 2021 | $1,400/adult and child | American Rescue Plan |
The third round is the one tied to the 2021 Recovery Rebate Credit. If you missed it, this is your chance to make it right.
If your 2021 taxes are already filed and you qualify, sit tight—your check or deposit could be on the way. If not, file your taxes now and don’t leave that money on the table. This is one of the last chances to claim pandemic-related relief, and it’s worth grabbing while you still can.
FAQs
Who qualifies for the $1400 payment?
Taxpayers who didn’t claim the Recovery Rebate Credit in 2021.
When is the deadline to file 2021 taxes?
You must file by April 15, 2025 to claim the credit.
How will I get the payment?
Through direct deposit or by paper check, depending on your filing.
What if I didn’t file my 2021 return?
You can still file and claim the credit before the deadline.
Why is the IRS sending these payments now?
They found 1 million taxpayers missed claiming the 2021 credit.
