IRS Timelines: What We Know So Far

The IRS has announced it will automatically issue special payments of up to $1,400 to around one million eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. These payments are expected to be delivered by late January 2025.

• Official Updates: The IRS has urged taxpayers to monitor the “Get My Payment” tool for real-time updates on their payment status. While exact payment dates haven’t been publicly disclosed, past trends suggest funds could begin appearing in bank accounts by midweek.
• Processing Order: Payments are typically prioritized for direct deposit recipients, followed by mailed paper checks. If your banking information or address has changed since your last filing, delays may occur.

What’s Next: The Week Ahead

Here’s what you can expect in the coming days:

1. Direct Deposits First: The IRS often processes payments for those with direct deposit on file. Keep an eye on your bank account starting Tuesday or Wednesday.
2. Paper Checks to Follow: Mailed checks will take longer, with a timeline ranging from a few days to over a week, depending on USPS delivery speeds.
3. Tracking Tools: The IRS “Get My Payment” tool remains the best way to track your payment status. Updates typically refresh daily, so check regularly.

Proactive Tips to Avoid Delays

• Update Your Address: File Form 8822 with the IRS to notify them of a change of address. Use the online account portal to update your details quickly.
• Check Your Banking Information: If your direct deposit information has changed, you’ll need to file a tax return for the Recovery Rebate Credit. Unfortunately, the IRS doesn’t allow mid-process updates to banking details, so ensure the accuracy of your last filing.
• Ensure Dependents Are Included: Payments are calculated based on your most recent tax return. If you’ve added a dependent, make sure they’re properly listed in your filing to avoid missing additional funds.

Stimulus Check FAQs: Clearing Up the Confusion

Why Are Some Payments Delayed?

Several factors can cause delays, including:

• Banking Issues: Outdated or incorrect direct deposit information may result in returned payments.
• Address Changes: If you’ve moved and haven’t updated your details, the check could be mailed to the wrong location.
• Eligibility Confusion: Payments are calculated based on income thresholds and filing status. If you recently changed jobs or marital status, discrepancies could arise.
• Processing Backlog: High volume can slow down IRS operations, particularly during peak tax season.

Who Is Eligible for the Recovery Rebate Credit?

Eligibility is tied to your 2021 tax situation:

• Income Thresholds: Single filers earning less than $75,000 and joint filers earning less than $150,000 are eligible for full payments, with reduced amounts for higher incomes.
• Dependents: Families with dependents added after 2020 should verify they’re included in their 2021 filings to claim the credit.
• Life Changes: Marriage, divorce, or adopting children in 2021 could impact your eligibility or the amount you receive.

What If I Miss the Deadline?

Failing to claim the Recovery Rebate Credit by April 15, 2025, will mean forfeiting the payment permanently. There are no extensions for missed deadlines.

How Do I Know My Payment Status?

Use the IRS “Get My Payment” tool to check your status. You’ll need your Social Security number, filing status, and refund amount (or owed amount) from your most recent tax return.

What About Tax Filing Implications?

Claiming the Recovery Rebate Credit will adjust your 2021 tax filing:

• Filing for the Credit: If you didn’t receive your full stimulus payment, you must include the RRC worksheet in your 2021 filing.
• Refund Adjustments: The credit will either increase your refund or reduce your owed amount. Ensure your information is accurate to avoid delays.

Key Points for You to Consider

• Act swiftly to verify your eligibility and update your details.
• Use IRS tools like “Get My Payment” and online accounts to track progress.
• If your payment hasn’t arrived by early February, consider filing for the Recovery Rebate Credit.
• Don’t miss the April 15, 2025, deadline.

This week is crucial for millions of Americans waiting for their stimulus checks. Stay informed, act proactively, and ensure you receive the money you’re entitled to.