Stimulus update: IRS to send out $2.4 billion in outstanding checks from 2021

This month, the Internal Revenue Service says it will distribute about $2.4 billion in outstanding stimulus check funds to taxpayers who did not claim a credit they were actually eligible for in 2021.

According to the agency, internal data showed that more than 1 million Americans filed their 2021 tax returns without claiming the Recovery Rebate Credit for COVID-19 Economic Impact Payments – also known as stimulus checks.

“Looking at our internal data, we realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.”

The IRS says no action is required for taxpayers to claim these payments, but money will only go to eligible taxpayers who either filled out $0 for the Recovery Rebate Credit on their 2021 federal tax return or left the line blank.

According to the agency, the payments could be up to $1,400 per individual but could vary. The payments are left over from the three stimulus payments that were sent during the pandemic – two of which came in 2020 and the third in 2021.

For those eligible, the IRS says it will send a payment to either the bank account listed on the taxpayer’s 2023 tax return. If the account has since been closed, the bank will return the payment to the IRS, which will then issue a refund to the address of record.

The agency says even those who did not file 2021 tax returns may still be eligible, but they must file those 2021 returns by April 15 to claim the Recovery Rebate Credit.