IRS to Distribute $1,400 Stimulus Payments to Nearly One Million Americans by Late January 2025

The Internal Revenue Service (IRS) has announced a significant financial relief initiative, confirming the distribution of $1,400 stimulus payments to approximately one million eligible taxpayers who failed to claim their 2021 Recovery Rebate Credit. This $2.4 billion payout program aims to reach Americans who either missed out on previous stimulus payments or received less than their entitled amount during the pandemic period.

IRS Commissioner Danny Werfel revealed that the agency identified roughly one million taxpayers who were eligible for the credit but hadn’t claimed it on their tax returns. These automatic payments, which began processing in December 2024, are expected to reach recipients by the end of January 2025.

The payments specifically target individuals who filed their 2021 tax returns but either left the Recovery Rebate Credit section empty or mistakenly entered $0, despite being eligible for the benefit. The distribution will occur through direct deposits to bank accounts or paper checks sent via mail, with recipients also receiving notification letters about their claims.

Eligibility for these payments follows specific criteria. Taxpayers must have submitted their 2021 tax returns and met the original income thresholds for federal stimulus payments. For individuals, the full payment applies to those earning up to $75,000 annually, while married couples filing jointly must have earned no more than $150,000.

The IRS has streamlined the process by making it automatic, eliminating the need for eligible taxpayers to file amended returns. This approach aims to reduce complications and ensure efficient distribution of funds to qualified recipients. For those who haven’t yet filed their 2021 tax returns, there’s still an opportunity to claim the credit by submitting returns before the April 15, 2025 deadline.

This initiative represents part of the government’s ongoing efforts to provide financial support to Americans facing economic challenges. While this payment specifically addresses previously unclaimed benefits from 2021, it arrives at a time when many households continue to struggle with inflation and rising living costs.

The IRS emphasizes that most eligible recipients won’t need to take any action to receive their payments. However, taxpayers are encouraged to ensure their banking and contact information is current in their IRS accounts to avoid any delays in receiving their funds.

This distribution marks a significant effort by the IRS to rectify overlooked payments and provide additional financial support to eligible Americans. As the payments roll out through January 2025, recipients can expect either direct deposits or paper checks, depending on their registered payment preferences with the IRS