World News | Million Taxpayers Will Soon Receive Up to USD 1,400 from IRS. Who Are They and Why Now?

Washington, Dec 22 (AP) Approximately 1 million taxpayers will automatically receive special payments of up to USD 1,400 from the IRS in the coming weeks. The money will be directly deposited into eligible people's bank accounts or sent in the mail by a paper check.

The IRS said it's distributing about USD 2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. People who missed one of the COVID stimulus payments or had received less than the full amount were able to claim the credit. But the IRS on Friday said it discovered many eligible taxpayers hadn't done so.

Also Read | ‘Russia Never Abandoned Desire To Normalise Ties With US’, Says Vladimir Putin Ahead of Donald Trump Assuming Office.

“Looking at our internal data, we realised that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.

Here's more about the unexpected cash this group of taxpayers will soon receive:

Also Read | What Is Dinga Dinga Virus? From Symptoms to Causes, All About the Mysterious Virus Outbreak in Uganda That Leaves People 'Dancing' Uncontrollably.

What's the likelihood I'll receive a check?

Sorry, it's probably pretty low. The IRS said most taxpayers eligible for the federal stimulus payments, formally known as Economic Impact Payments, have already received them.

The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 tax return but left the data field for the Recovery Rebate Credit blank or they filled it out as USD 0 when they were actually eligible for the credit.

How will this work?

Eligible taxpayers don't have to take any action. The payments will go out automatically this month and should arrive by direct deposit or check by late January 2025. They'll be sent to the bank account listed on the taxpayer's 2023 return or to the address IRS has on file.

Payments will vary but the maximum amount will be USD 1,400 per individual. The IRS has posted information online about eligibility and how the payment was calculated.

IRS plans to send separate letters to eligible taxpayers notifying them of the special payment.

What if I haven't filed my 2021 tax return yet?

You still might be able to receive the money. However, taxpayers need to file a tax return and claim the Recovery Rebate Credit by the April 15, 2025 deadline, even if any income from a job, business or other source was minimal or nonexistent, according to IRS.

How many rounds of COVID stimulus payments were there?

There were three rounds of payments to households impacted by the pandemic, totalling USD 814 billion. IRS based the amounts that taxpayers received on their income, tax filing status and number of children or qualifying dependents.

In March 2020, eligible individuals received up to USD 1,200 per income tax filer and USD 500 per child under the CARES Act. In December 2020, eligible individuals received up to USD 600 per income tax filer and USD 600 per child under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to USD 1,400 per income tax filer and USD 1,400 per child under the American Rescue Plan Act. (AP)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)