The IRS is set to issue automatic stimulus payments in 2025, with eligible taxpayers receiving up to $1,400 per person through a special recovery rebate initiative. These payments aim to correct missed funds from earlier rounds of stimulus checks distributed during the pandemic. With over one million people expected to benefit, here’s everything you need to know to find out if you’re eligible and when you’ll see the money.
Why These Stimulus Payments Are Happening Now
This wave of payments is tied to the Recovery Rebate Credit (RRC), which some taxpayers either did not claim or mistakenly entered $0 on their 2021 tax returns. As a result, the IRS is stepping in to ensure they get the money they were entitled to during the earlier distribution of Economic Impact Payments in 2020 and 2021.
The IRS has allocated $2.4 billion to cover these payouts, which could make a significant difference for those who missed out during the initial distribution.
Who Qualifies for the $1,702 Stimulus Payment?
Eligibility for the payments depends on income levels reported on 2021 tax returns. Here’s a simple breakdown of who qualifies:
- Single filers: Full payment for those earning below $75,000; phased out completely at $80,000.
- Married couples filing jointly: Full payment for incomes under $150,000, phased out at $160,000.
- Head of household: Full payment for those earning below $112,500, phased out at $120,000.
The maximum benefit is $1,400 per individual. A married couple could receive $2,800—and an additional $1,400 per eligible dependent could be added to the total.
When Can You Expect Your Payment?
The IRS began processing these payments in December 2024, and they’ll continue distributing funds through late January 2025. Payments will be sent automatically, either through direct deposit to the bank account on file from your most recent tax return or via mailed paper checks.
Additionally, a confirmation letter will be sent to recipients detailing their payment amount and distribution method.
Do You Need to Do Anything?
In most cases, no action is required. If you’re eligible, you’ll automatically receive the payment. IRS Commissioner Danny Werfel emphasized that this automatic process aims to “reduce headaches” and ensure taxpayers don’t have to file amended returns or extra paperwork.
Haven’t Filed Your 2021 Tax Return Yet? You Still Have Time!
If you didn’t file your 2021 tax return but think you qualify for the payment, it’s not too late. The IRS has given taxpayers until April 15, 2025, to file their 2021 return and claim the Recovery Rebate Credit. If you believe you’re eligible, don’t miss this chance to receive your funds.
What to Do Next
Keep an eye on your bank account or mailbox over the coming weeks. For those who haven’t filed, make sure to submit your 2021 tax return before the April deadline.
With over a million taxpayers set to benefit from this initiative, the IRS aims to ensure that everyone who qualifies gets the money they missed.
