The Internal Revenue Service (IRS) announced a plan to distribute Recovery Rebate Credits to approximately one million individuals who did not receive their economic impact payments. These payments will have a maximum value of $1,400 per person, totaling an estimated $2.4 billion. Eligible recipients will receive a letter from the IRS in the mail; no action is required to claim the credit. Payments will be automatically disbursed in December via direct deposit or paper check, with all qualifying taxpayers expected to receive their funds by late January.
The IRS also noted that individuals who have not yet filed their 2021 tax returns may still be eligible. However, these taxpayers must file their returns by April 15th to claim the credit. For more information on these automatic payments, please click here.