The IRS is gearing up to issue special payments to over 1 million taxpayers that will amount to as much as $1,400. It is part of the government’s effort to settle financial discrepancies in past Economic Impact Payments (EIPs) or tax refunds. Here is what you need to know to determine if you qualify for these payments.
Why is the IRS Issuing Special Payments?
This is the objective for the IRS special payments for tax rectification for underpayments as well as people who got none and were affected by that anomaly or error during a stimulation round. These dollars should also pay for anybody filing status, and income-level alterations during these relevant times as impacted by those anomalies during any period involved in the distribution of a lot of this pandemic-area fiscal relief.
The agency emphasizes that this payment is not part of ongoing tax refunds or credits and instead is a way to equitably treat all eligible taxpayers.
Who is Eligible?
Eligibility to receive the $1,400 special payment is determined through certain criteria, including the following:
Past Filing Adjustments:
It could apply to taxpayers who amended their returns or made corrections to their 2020 or 2021 tax returns. If you think that you were not eligible for the stimulus payments as reflected on your earlier return, then this relief may be for you.
Income Changes:
Individuals whose income is below the eligibility threshold now, after the initial return, are now eligible. For example, taxpayers whose earnings fall below the cutoff for the third Economic Impact Payment will qualify.
Dependent Changes:
If you claimed new dependents after filing your initial returns during the pandemic relief period, you could also receive these funds.
Missed Stimulus Payments:
Taxpayers who never received stimulus checks despite qualifying could be included in this distribution.
Social Security Number Issues:
Individuals who previously had mismatched or unverified Social Security numbers during their filing may also qualify after corrections.
How to Check Your Eligibility
Taxpayers can check their eligibility with the IRS online account, or through the IRS EIP eligibility tool. Those that are eligible will also have a notice in the mail which will include the sum and reason for the payment.
When Will Payments Be Issued?
The payment dates are set to start in early 2024. The IRS will make direct deposits or paper checks as selected by the taxpayer or from the account information the agency has on file. In order to avoid delays in receiving the payments, update your contact information and your banking information with the IRS.
What Should You Do?
If you believe that you meet the qualifications but haven’t received any notice, you can reach out to the IRS or look into your tax records. You also want to look back at older tax filings and identify where there might be inconsistencies that will make you eligible for payment.
The special payments from the IRS represent a timely measure to reconcile past financial mismatches for over 1 million taxpayers. If you qualify, look at the list of qualifications carefully and then take the initiative to ensure that you are among those recipients of these funds.
