It looks like Christmas came early for over a million Americans who didn’t claim their Recovery Rebate Credit on their 2021 tax returns. The IRS just announced that it’s cutting checks worth a total of $2.4 billion to make things right. That’s right—if you missed out on one or more of those pandemic stimulus payments, help is on the way. And no, you don’t have to wade through the dreaded process of filing an amended return. The IRS is doing it automatically. Cue the sighs of relief.
For those unfamiliar, the Recovery Rebate Credit was part of Uncle Sam’s pandemic response. It was designed to ensure that everyone got their due, even if they missed the initial stimulus checks—officially known as Economic Impact Payments (EIPs). But as you might expect with anything involving the IRS and government red tape, a lot of eligible folks fell through the cracks.
Why did so many miss out? The reasons range from confusion about eligibility to clerical errors to good old-fashioned procrastination. Some people didn’t realize they could claim the credit, while others got tripped up by changes in their financial or family circumstances. Whatever the reason, it left thousands—if not millions—without the funds they were entitled to. Fast forward to today, and the IRS is stepping in to fix its own mess. Better late than never, right?
This is good news for American taxpayers who, let’s face it, could use the break. Inflation might not be at its June 2022 peak, but it’s still hanging around like that relative who doesn’t know when to leave the party. Grocery prices, housing costs, and everyday essentials are putting a strain on wallets across the country. For many, these “special payments” will provide a much-needed cushion, even if it’s coming a bit later than expected.
Of course, the timing of this announcement is worth noting. It comes as economic concerns remain top of mind for many Americans. With inflation ticking back up in recent months, the IRS’s decision to issue these payments automatically is likely to be a welcome relief—though you can bet some will see it as a political move. Regardless of the motives, one thing’s clear: For those getting these checks, it’s a win.
So, check your mailbox (or direct deposit) later this month. If you’re one of the million or so, this could be the boost you didn’t know you were waiting for.
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