People who filed their taxes will be happy to hear that $1.8 billion is being sent to people all over the United States. This cash help is part of a number of government programs meant to help eligible people, especially those who may not have received benefits in the past.
You can get these payments if you file your taxes. Here’s everything you need to know, like who is eligible and how much you can expect to get.
Why Are These Payments Being Distributed?
The payments are primarily a continuation of the Economic Impact Payments (EIPs) initially rolled out under the American Rescue Plan.
In 2023 and 2024, the IRS and the U.S. Department of the Treasury have been disbursing additional payments to individuals who did not initially qualify or whose tax returns have since been updated.
These payments are designed to relieve millions of Americans financially, especially as they cope with inflation and economic recovery.
Who is Eligible for the $1.8 Billion Distribution?
The Distribution is mainly targeted at individuals who:
- Just turned in their tax returns for 2020 or 2021.
- They did not get the full amount of their Economic Impact Payments before.
- Qualified for a “plus-up” payment due to updates in their 2020 tax return, meaning they are eligible for additional funds.
For instance, over 960,000 payments, worth more than $1.8 billion, were distributed to eligible filers. More than 500,000 of these payments were sent to people who did not have the right information on file with the IRS to get a payment before.
Additionally, more than 460,000 “plus-up” payments, valued at over $800 million, were sent to those who became eligible for larger amounts based on their updated tax information.
How Much Can You Expect to Receive?
The amount varies depending on your filing status and income level. For most people, the payments will come as a direct deposit or check. Here’s a breakdown of what to expect:
| Payment Type | Estimated Amount | Eligibility |
|---|---|---|
| Economic Impact Payments | Up to $1,400 per person | Individuals who missed out on previous rounds of EIPs. |
| Plus-up Payments | Varies by income | Those whose 2020 or 2021 tax returns reflect higher eligibility. |
| Supplemental Payments | Additional $600-$800 | Filers who qualified for a larger benefit after return adjustments. |
The good news is that you don’t need to take any additional action if you qualify for these payments. The IRS automatically issues them based on your most recent tax return information.
However, if your banking information has changed, it is recommended that you update it with the IRS to avoid delays in receiving your payment.
How Will You Receive the Payment?
The payments will be disbursed through direct deposit or checks sent to your last known address. If you’re unsure about your eligibility or payment status, you can use the IRS’s online tools to track your payment or check your tax return status.
What to Do If You Haven’t Received Your Payment
Before you think you’re not qualified for the payment but think you should be, check your 2020 and 2021 tax returns.
The IRS bases these payments on the most up-to-date information they have access to, so if you make a mistake on your tax return, your payment could be delayed.
If you find out you made a mistake or forgot to claim a credit or deduction that changes your status, you may be able to file an amended return.
Conclusion
Millions of Americans will be very grateful for the $1.8 billion in payments. If you file taxes, you may be able to get some of this Distribution.
This is especially true if you just recently updated or fixed your tax return. Keep track of your filing status and use the IRS tools to make sure you’re not missing out on any benefits.
