IRS to send unclaimed tax rebates to 1M Americans

Published On Dec 26, 2024, 10:42 AM

The IRS is set to automatically send out payments to approximately 1 million taxpayers who did not claim the Recovery Rebate Credit due to oversight in their 2021 tax returns. The payments, which are expected by late January 2025, aim to distribute around $2.4 billion across eligible individuals, with a maximum of $1,400 per person based on eligibility. This initiative is part of the IRS's efforts to improve taxpayer support and reduce the cumbersome process of filing amended returns for those entitled to this credit.

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The IRS's proactive approach could lead to increased disposable income for many households, potentially boosting consumer spending. Companies particularly in consumer goods and retail might see a positive impact as people spend their rebates, providing a lift to these sectors.

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Some Americans who qualified for a pandemic-era tax credit but did not claim it will get up to $1,400 in their account within the next month.

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The potential impact of President-elect Donald Trump's policies remained top of mind for consumers in December, per the Conference Board.

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