The Internal Revenue Service (IRS) is wrapping up a key phase of pandemic-related financial relief by sending out automatic payments to nearly one million taxpayers who did not claim the 2021 Recovery Rebate Credit on their tax returns. These payments are expected to reach recipients by late January 2025.
Why These Payments Are Being Issued
The Recovery Rebate Credit was designed to assist individuals who missed out on or did not receive the full amount of their Economic Impact Payments—commonly referred to as stimulus checks—distributed during the COVID-19 pandemic. While the majority of eligible taxpayers successfully claimed this credit, IRS reviews identified a significant number who overlooked it.
In December 2024, IRS Commissioner Danny Werfel highlighted the importance of addressing this gap:
“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.”
Disbursement Process
Eligible individuals can receive up to $1,400 per person, depending on their circumstances. Payments are being issued through direct deposit or paper checks, based on the details provided on the recipient’s 2023 tax return. The IRS will notify recipients by mail once their payment has been disbursed.
For taxpayers whose bank account details have changed, payments will be reissued as paper checks sent to their most recent address on file. The IRS has emphasized the importance of keeping personal information, such as addresses, up to date to avoid delays.
Eligibility and Next Steps
The IRS estimates a total of $2.4 billion will be distributed through this final round of payments. Taxpayers who did not file a 2021 return but believe they are eligible have until April 15, 2025, to submit a return and claim their credit.
For those who already filed a 2021 return and are eligible for this payment, no action is necessary—the process is fully automatic. Taxpayers unsure of their eligibility are encouraged to consult the IRS website or use the agency’s online tools to confirm their status.
Additional Outreach Efforts
As part of its broader mission to ensure taxpayers claim all benefits to which they are entitled, the IRS has pledged to enhance its outreach efforts during the 2025 tax season. These initiatives will focus on raising awareness about other pandemic-related relief measures, such as the Earned Income Tax Credit, which remains underutilized by many eligible individuals.
This final round of payments represents a conclusion to the federal government’s COVID-19 stimulus programs, offering taxpayers one last chance to access unclaimed financial assistance.
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