I.R.S. to Send Out Unclaimed Tax Credit to One Million Taxpayers

Published On Dec 23, 2024, 6:23 PM

The IRS is distributing automatic payments of up to $1,400 to approximately one million taxpayers who were eligible for the 2021 Recovery Rebate Credit but did not claim it. This initiative is expected to total around $2.4 billion in payments by the end of January 2025. Eligible individuals include single taxpayers earning under $80,000, married couples making under $160,000, and heads of households earning below $112,500, provided they filed a tax return in 2021. Payments will be sent automatically based on the latest tax information and will vary based on individual household circumstances.

Stock Forecasts

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Positive

As consumers receive these payments, there could be an increase in discretionary spending, benefiting businesses in retail and consumer sectors. Investing in ETFs that focus on consumer discretionary sectors may leverage this spending boost.

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Positive

The automatic payments may positively impact the stock prices of companies in the retail sector as they stand to gain from increased consumer spending. Investors might look at companies like Amazon or Target.

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The automatic deposits will be issued “later this month” and should arrive ”in most cases” by late January 2025.

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