Soon, up to a million taxpayers will receive payments of up to $1,400 from the IRS.

 In the coming weeks, around 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS. Eligible individuals will have the funds either directly deposited into their bank accounts or sent via paper check in the mail.

The IRS announced it is distributing approximately $2.4 billion to taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. This credit was available to those who missed a COVID stimulus payment or received less than the full amount. However, the IRS revealed on Friday that many eligible taxpayers had failed to claim it.

"After reviewing our internal data, we found that one million taxpayers overlooked claiming this complex credit despite being eligible," said IRS Commissioner Danny Werfel in a statement.

Here’s what you need to know about the unexpected cash that some taxpayers will soon receive:

What are my chances of getting a check?

Unfortunately, they’re likely quite low. The IRS stated that most taxpayers who are eligible for the federal stimulus payments—officially known as Economic Impact Payments—have already received them.

The special payments being issued now are for taxpayers who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or mistakenly entered $0, even though they were actually eligible for the credit.

How will this work?

Eligible taxpayers don’t need to do anything. The payments will be processed automatically and should arrive by late January 2025. They will be sent either by direct deposit to the account listed on the taxpayer’s 2023 return, or by check to the address the IRS has on file.

Payments will vary, with a maximum of $1,400 per individual. The IRS has made information available online regarding eligibility and the payment calculation.

The IRS also plans to send separate letters to eligible taxpayers to inform them about the special payment.

What if I haven’t filed my 2021 tax return yet?

You may still be eligible to receive the payment. However, taxpayers must file a tax return and claim the Recovery Rebate Credit by the deadline of April 15, 2025, even if their income from work, business, or other sources was minimal or nonexistent, according to the IRS.

How many rounds of COVID stimulus payments were there?

There were three rounds of stimulus payments to households affected by the pandemic, totaling $814 billion. The IRS determined the amounts based on income, tax filing status, and the number of children or qualifying dependents.

• In March 2020, under the CARES Act, eligible individuals received up to $1,200 per income tax filer and $500 per child.
• In December 2020, under the Consolidated Appropriations Act, eligible individuals received up to $600 per income tax filer and $600 per child.
• In March 2021, under the American Rescue Plan Act, eligible individuals received up to $1,400 per income tax filer and $1,400 per child.