The IRS has announced a special year-end gift for as many as 1 million taxpayers, depositing pandemic-era stimulus checks worth a total of $2.4 billion directly into their bank accounts. These automatic deposits will be issued by late January 2025.

Eligibility for Stimulus Checks

The payments will be made to eligible taxpayers who did not claim the 2021 recovery rebate credit on their tax return for themselves and their dependents. Each individual could receive up to $1,400. IRS Commissioner Danny Werfel stated, “We realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”

Automatic Deposits

The IRS has confirmed that these payments will be automatic, meaning eligible taxpayers will not need to file an amended return to receive the money. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic,” Werfel added.

Impact on Taxpayers

This initiative aims to provide financial relief to those who missed out on the previous stimulus payments. The IRS will send the payments to the bank account listed on the taxpayer’s 2023 tax return or to their address of record if the bank account has been closed.