IRS to Automatically Issue $1,400 Payments to Eligible Taxpayers

WASHINGTON – Approximately 1 million American taxpayers will automatically receive special payments of up to $1,400 from the Internal Revenue Service (IRS) in the coming weeks. The payments will be directly deposited into eligible individuals’ bank accounts or mailed via paper checks.

The IRS revealed plans in December 2024 to issue payments automatically to those who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This credit serves as a refundable tax benefit available for individuals who did not receive one or more Economic Impact Payments (EIPs), commonly known as stimulus payments.

“Most eligible taxpayers have already received their payments or credits. However, those who haven’t filed their 2021 tax returns may still qualify,” explained a spokesperson for the IRS. Eligible taxpayers must file their tax returns and claim the Recovery Rebate Credit by the April 15, 2025, deadline.

Payments will vary based on individual circumstances, but the IRS estimates total payments to amount to approximately $2.4 billion. The agency reported that the median refund for those who filed a Form 1040, the Federal Income Tax Return, for the 2021 tax year is approximately $781, excluding the Recovery Rebate Credit.

Taxpayers typically have three years from the due date of their tax return to file and claim refunds. Failure to file within this timeframe results in the funds being relinquished to the U.S. Treasury.

In related discussions, former President Donald Trump has expressed support for a proposal to redistribute funds from the Department of Government Efficiency (DOGE) to U.S. citizens. Trump indicated plans to allocate 20% of savings generated by DOGE efficiencies to American households, potentially providing an additional financial boost to taxpayers.

James Fishback, founder of Azoria Partners, offered insight during an interview. “If DOGE saves $2 trillion overall, distributing 20% could yield $400 billion, which divided among taxpayers would equate to approximately $79 million,” he stated, emphasizing the importance of timely action by eligible tax filers.

As it stands, there have been no updates on the progress of the DOGE Dividend proposal.