Good news to start 2025!!: the IRS has announced that Americans could receive an automatic payment in the coming weeks if they did not claim the Recovery Rebate Credit in 2021 (don’t worry, we’ll explain it to you in detail below). This means that, without lifting a finger, you could receive up to $1,400!! If you’re wondering if you’re one of those eligible or what you need to do, we’ll explain everything to you in a simple way here, go get your money!
Okay, okay, but what is the Recovery Rebate Credit?
We are talking about a tax benefit designed for those who did not receive any of the economic impact payments (the famous stimulus that we love so much) that the government distributed at the time. If you filed your tax return in 2021 but did not fill out the field for this credit or set it to $0 without realizing that you qualified, you could receive your money this year, and who doesn’t like receiving money?
How do I know if I’m eligible?
Pay attention to your notifications because the IRS is sending these payments to people who:
- Met the income requirements in 2021 but did not claim the credit.
- Filed their return with errors in the tax credit field.
- If you meet these conditions, don’t worry: the IRS has its eye on you and the process is completely automatic.
How much money are we talking about?
The amount will vary depending on each case, but the maximum amount is $1,400 per person, and it is part of a total package of $2.4 billion that will be distributed throughout the country. Imagine what you could do with that extra money in your pocket… And even more so in January!!
And best of all, do you know what it is? You won’t have to do anything because the payments are automatic, so if you qualify, the money will go directly to the bank account you used to file your return, and if not, it will arrive as a check by mail.
What if I didn’t file taxes in 2021?
You still have time to claim this benefit! The deadline to file your 2021 return and request the Recovery Rebate Credit is April 15, 2025. Yes, you read that right: you still have time.
To catch up on your taxes, follow these four steps:
- Go to the IRS website (click here)
- Download the 2021 tax return form
- Complete your return including the credit, don’t forget it!!
- Send it all before the deadline
When will the money arrive?
The first payments began to be issued last December, so, before the end of this month of January, it is expected that all people will have their money in their bank accounts. In addition, the IRS has committed to sending an informative notice with the amount of money that each beneficiary will receive and how they will process the payment in each case.
In the event that you do not receive anything (that is, if by February 2025 you have not seen anything in your bank account) review the information you provided to the IRS and make sure that all your information is correct, then go to the IRS to report the problem and have them resolve it as soon as possible.
Don’t miss this opportunity to claim money that belongs to you and start 2025 off right!