The IRS is Sending Out Surprise Stimulus Checks – Did You Miss Out?

Were you a New York taxpayer who received a stimulus check for the Recovery Rebate Credit in 2021? If you don’t, it’s yours by the end of January from the Internal Revenue Service (IRS). Early last month, the Internal Revenue Service said those who weren’t eligible to claim the Recovery Rebate Credit on their 2021 tax returns would get automatic payments.

We learned this after looking at our internal data and found one million taxpayers who were actually eligible and didn’t even claim this credit,” said IRS Commissioner Danny Werfel. They are also automatically making these payments for convenience and so that eligible taxpayers get paid without the drudgery of filing amended returns, he also noted.

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This year the IRS is going to come as a surprise for millions of Americans with new incentives.

The Recovery Rebate Credit is a refundable credit for people who did not get one or more Economic Impact Payments, also referred to as stimulus payments, the IRS says. And if you left the Recovery Rebate Credit blank on your 2021 tax return or entered $0 when you were eligible for the credit, you may receive a stimulus check soon. Remember that the IRS also says the national total being distributed is $2.4 billion and that recipients will get an average of $1,400 in stimulus payments.

On top of that, the IRS also states that you don’t have to do anything to receive your stimulus check, as the money will automatically be given to those who are entitled. In most cases, the check is expected to arrive by the end of January 2025 as a check to your tax return address on file or as a direct deposit to the bank account shown on your 2023 tax return. Checks were sent in December.

If you qualify, you should also be sent a separate letter telling you the payment went through. You may still qualify for a stimulus payment if you file a Recovery Rebate Credit claim on your 2021 return by April 15, 2025. That’s why the Internal Revenue Service is telling all eligible recipients to look out for upcoming stimulus check payments.

Can I track my previous tax returns?

According to the Internal Revenue Service (IRS), all beneficiaries can look up their previous year’s tax returns. The ‘Where is my money’ feature returns the IRS records of federal returns for the last two years. Since return information from previous years is only available via your IRS online account, it’s plausible that you just simply forgot your password. You can then see your last tax return, information on any IRS notices you’ve received, your outstanding balances and your address on file, and your payment history.

SSI Payment Eligibility: Check if You Qualify for $967 or $1,450 by January 31

Additionally, IRS2Go is a mobile app that helps you track your tax return status. The app lets you know if any returns have been issued on your return and whether they’ve accepted your return. Be reminded that all recipients will need to enter their Social Security number, filing status, and anticipated refund amount to log in. If your status hasn’t changed, be sure to check again the next day since the IRS is updating the app overnight.

Cuts to IRS coming as Trump takes office

As a result of a government shutdown agreement, the Internal Revenue Service lost $20 billion in funding and is expected to take more budget cuts in the next Congress. Democrats and Republicans detest government regulations; Democrats argue that they deprive the feds of revenue and tax fairness; Republicans argue that they hinder the government, but none of the parties stress the advantages of a well-financed IRS. Years of underfunding at the IRS have contributed to a half-trillion-dollar unpaid tax bill, forcing agencies like the IRS to launch fundraisers on social media.

In addition, the reduction of revenues has a profound effect on the economy, as well as providing a competitive advantage to those able and willing to avoid their tax obligations. This issue will only get worse with less enforcement funding. Disproportionately, it is these businesses that have the least incentive to avoid tax burdens, such as self-employed entrepreneurs, cash-input businesses and large private companies, that owe the hundreds of billions of dollars in unpaid debt. They are more likely to pay their taxes if they have fewer opportunities to avoid taxes and pay their workers directly.

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