IRS Issues $2.4 Billion in Automatic Stimulus Payments to Eligible Taxpayers

WASHINGTON, D.C. — The Internal Revenue Service (IRS) announced it has automatically issued stimulus payments to approximately one million eligible taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns. The payments, totaling $2.4 billion nationwide, began distribution in December 2024 and are expected to reach recipients by late January 2025.

The Recovery Rebate Credit is a refundable tax credit designed for individuals who did not receive one or more Economic Impact Payments (EIP), commonly known as stimulus checks, during the COVID-19 pandemic. IRS Commissioner Danny Werfel stated, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible. To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic.”

Eligible taxpayers do not need to take any action to receive the payments, which will be distributed either via direct deposit or paper check. The IRS will also send notification letters to recipients to confirm the payments. Taxpayers can verify their eligibility by reviewing their 2021 tax returns to see if they left the Recovery Rebate Credit field blank or entered $0.

The maximum payment an individual can receive is $1,400, though amounts may vary based on specific eligibility criteria. Taxpayers who did not file a 2021 tax return but are eligible for the credit must file by April 15, 2025, to claim their payment. “Eligible taxpayers who did not file must file a tax return to claim a Recovery Rebate Credit, even if their income from a job, business or other source was minimal or non-existent,” the IRS emphasized.

This initiative aims to simplify the process for taxpayers who missed out on earlier stimulus payments. Werfel added, “These people will not be required to go through the extensive process of filing an amended return to receive it.” The IRS encourages taxpayers to monitor their bank accounts and mail for updates on their payments.