Many Americans are experiencing financial difficulties as a result of inflation and the growing cost of living. Approximately one million taxpayers have received special payments from the Internal Revenue Service (IRS) of up to $1,400 in response.
These taxpayers will also receive a refundable credit that will be very beneficial to them.
In December 2024, the IRS started distributing stimulus payments automatically to qualified taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax return. This was a relief measure put in place following the Covid-19 pandemic.
Eligible taxpayers did not have to do anything to obtain the refund, according to the IRS, because they were already listed in the system and did not need to submit a claim.
While other taxpayers should have received a check in the mail, sent to the address they registered with the IRS, it should have already been made by direct deposit into the bank account listed on their 2023 tax return.
How to monitor a reimbursement?
The IRS and the U.S. Department of the Treasury disbursed the Economic Impact Payment (EIP) in three rounds; nevertheless, the $1,400 payment was made since many qualified taxpayers filed their taxes without claiming the Recovery Rebate Credit.
“We are making these automatic payments, which means taxpayers will not have to file an amended return to receive it,” IRS Commissioner Danny Werfel said in a statement released in December, “to make this process easier and ensure that this money goes to those who need it.”
On its website, the IRS explained that if a person did not get an Economic Impact Payment or received less than the entire amount, they would be able to claim a Recovery Rebate Credit on their federal tax return for 2020 or 2021.
It’s critical to realize that the Economic Impact Payments were applicable in a variety of tax years. To claim a Recovery Rebate Credit, you will need to file a 2020 or 2021 tax return, depending on whether you missed the first, second, or third payment, the IRS stated in a statement.
Additionally, it is advised that you view the total amounts of your first, second, and third Economic Impact Payments in the “Economic Impact Payment Information” part of the Tax Records page by checking your individual IRS account.
Nevertheless, even if the IRS decided that the $1,400 refund will be processed automatically, you can use the ‘Where’s My Refund?’ service if you have any queries regarding your eligibility or the status of any payments.
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The information is updated daily, and you must have the following details on hand:
- Your Individual Taxpayer Identification Number (ITIN) or Social Security number
- Status of marriage
- The precise amount of your return’s refund
When you select Where’s My Refund?, the following details will appear:
- Received return: Your return has been received and is being processed.
- Refund authorized: Your refund has been authorized, and we are getting ready to issue it on the specified date.
- Refund sent: The refund was mailed to you or sent to your bank. It could take weeks for your cheque to come in the mail or as long as five days for it to show up in your bank account.