A million taxpayers will soon receive up to $1,400 from the IRS

Approximately 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the coming weeks. The money will be directly deposited into eligible people’s lender accounts or sent in the mail by a document check.

The IRS said it’s distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate financing on their 2021 levy returns. People who missed one of the COVID stimulus payments or had received less than the packed amount were able to claim the financing. But the IRS on Friday said it discovered many eligible taxpayers hadn’t done so.

“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complicated financing when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.

Here’s more about the unexpected liquid assets this throng of taxpayers will soon receive:

Sorry, it’s probably pretty low. The IRS said most taxpayers eligible for the federal stimulus payments, formally known as Economic Impact Payments, have already received them.

The special payments announced by the IRS are being sent to those taxpayers who filed a 2021 levy profitability but left the data field for the Recovery Rebate financing blank or they filled it out as $0 when they were actually eligible for the financing.

Eligible taxpayers don’t have to receive any action. The payments will leave out automatically this month and should arrive by direct capital or check by late January 2025. They’ll be sent to the lender account listed on the taxpayer’s 2023 profitability or to the address IRS has on file.

Payments will vary but the maximum amount will be $1,400 per person. The IRS has posted information online about eligibility and how the settlement was calculated.

IRS plans to send divide letters to eligible taxpayers notifying them of the special settlement.

You still might be able to receive the money. However, taxpayers require to file a levy profitability and claim the Recovery Rebate financing by the April 15, 2025 deadline, even if any turnover from a job, business or other source was minimal or nonexistent, according to IRS.

There were three rounds of payments to households impacted by the pandemic, totaling $814 billion. IRS based the amounts that taxpayers received on their turnover, levy filing position and number of children or qualifying dependents.

In March 2020, eligible individuals received up to $1,200 per turnover levy filer and $500 per kid under the CARES Act. In December 2020, eligible individuals received up to $600 per turnover levy filer and $600 per kid under the Consolidated Appropriations Act. In March 2021, eligible individuals received up to $1,400 per turnover levy filer and $1,400 per kid under the American Rescue schedule Act.