IRS to Issue Automatic Recovery Rebate Credit Payments for 2021 Tax Year (IR-2024-314)

The IRS has announced plans to issue automatic payments to eligible individuals who failed to claim the Recovery Rebate Credit on their 2021 tax returns. The credit, a refundable benefit for individuals who missed one or more Economic Impact Payments, provides up to $1,400 per person. Payments will be automatically deposited into bank accounts or sent as paper checks, with most recipients expected to receive their funds by late January 2025. The IRS will also notify eligible taxpayers with a letter confirming their payment.

The IRS identified approximately one million taxpayers who were eligible for the Recovery Rebate Credit but did not claim it on their 2021 tax returns. To simplify the process, the agency is making these payments automatic, eliminating the need for amended returns. Taxpayers who did not file 2021 returns must submit them by April 15, 2025, to claim the credit. This initiative reflects the IRS’s ongoing commitment to ensuring taxpayers receive all eligible credits and benefits without unnecessary administrative burdens.

The Recovery Rebate Credit does not count as income for federal assistance programs such as SSI, SNAP, TANF, and WIC, safeguarding benefits for low-income households. The IRS also plans to expand outreach during the 2025 filing season to raise awareness of other available tax credits and deductions, including the Earned Income Tax Credit. Taxpayers can access their IRS Online Account to verify eligibility and determine the amount of any prior Economic Impact Payments received.

IR-2024-314