Millions of Americans could receive a financial boost in 2025, with federal and state-level stimulus payments on the way. Some taxpayers may get up to $500 in relief, while others could receive even more. If you’re wondering whether you qualify and how to claim your payment, here’s what you need to know.
IRS Recovery Rebate Credit: Are You Getting a Check?
The IRS is sending out automatic payments to nearly one million taxpayers who failed to claim the Recovery Rebate Credit on their 2021 tax returns. These payments, worth up to $1,400 per person, will be deposited or mailed by the end of January 2025. If you didn’t file your 2021 return yet, you still have time! The deadline to file and claim this credit is April 15, 2025.
State Stimulus Programs Offering Extra Cash
Several states have launched their own stimulus programs, giving eligible residents up to $500 in direct payments:
- California: Cities like Long Beach and Sonoma County are rolling out guaranteed income programs that provide $500 per month to selected low-income families.
- New York: Governor Kathy Hochul has proposed a one-time $500 payment for eligible residents to help combat rising costs. If approved, payments could be distributed in fall 2025.
- Michigan & Illinois: Nonprofit groups, like UpTogether, are working with local governments to send $500 monthly payments to selected families for an entire year.
Who Qualifies for These Payments?
Eligibility varies depending on the program:
- IRS Recovery Rebate Credit: If you filed a 2021 tax return but didn’t claim the credit, you may receive a check automatically. If you haven’t filed yet, you must do so by April 15, 2025.
- State Stimulus Programs: Each state has different criteria, often based on income and family size. Check your state’s official website for details and application deadlines.
How to Make Sure You Get Your Payment
- File Your Taxes on Time: To get the Recovery Rebate Credit, file your 2021 tax return before the April 15 deadline.
- Check State Programs: Each state has different application requirements and timelines. Stay updated by visiting your state’s official website.
- Watch Out for Scams: Be cautious of fake emails or messages asking for personal information. Only trust official government sources.
With inflation still affecting household budgets, these stimulus payments could offer much-needed relief. Make sure you’re informed and take the right steps to claim your share!
