IRS Announces Special Payments To Over A Million Taxpayers; Here's What Oklahomans Need To Know

The Internal Revenue Service (IRS) will issue automatic payments to eligible taxpayers who failed to claim the 2021 Recovery Rebate Credit on their tax returns, the agency announced.

The IRS said these payments, expected to total about $2.4 billion, aim to assist individuals who were eligible but missed claiming the credit, which provided up to $1,400 per person.

Why is the IRS issuing these payments?

The Recovery Rebate Credit was designed for individuals who did not receive some or all of their Economic Impact Payments (EIPs), also known as stimulus payments.

According to the IRS, over one million taxpayers mistakenly left the credit blank or reported $0 on their 2021 tax returns, despite being eligible.

No action is required for eligible taxpayers, who will automatically receive the payments based on IRS records.

How will I receive a payment if I am eligible?

The IRS said the payments will be directed to the bank account or address on file from their most recent tax return.

For those who haven’t filed their 2021 tax returns, there’s still time to claim the credit. The IRS said taxpayers have until April 15, 2025, to submit their 2021 returns and potentially secure a refund.

Additional information on eligibility and the calculation of the Recovery Rebate Credit is available on the IRS website. The credit does not affect eligibility for federal benefits like SSI or SNAP.

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When can I expect to receive a payment if I am eligible?

The agency said most payments will be delivered via direct deposit or paper check by late January 2025, with recipients receiving a separate notification letter.

“The IRS continues to work hard to make improvements and help taxpayers,” IRS Commissioner Danny Werfel said. “These payments are an example of our commitment to go the extra mile for taxpayers.”

As the 2025 tax season approaches, the IRS said it plans to raise awareness about other tax credits and deductions, including the Earned Income Tax Credit, to ensure taxpayers claim all benefits available to them.