This month, millions of Americans could receive a much-needed financial boost. The IRS has announced it will send out $600 payments to eligible taxpayers in January 2025. These automatic payments aim to correct missed opportunities for financial relief tied to the Recovery Rebate Credit, part of the COVID-era stimulus programs.
The $600 payments will be issued to taxpayers who filed their 2021 tax returns but either missed claiming the Recovery Rebate Credit or mistakenly entered $0 in that section. The Recovery Rebate Credit allowed individuals to retroactively claim Economic Impact Payments they may have missed during the pandemic.
Who Qualifies for the $600 Payment?
To qualify, you must have:
- Filed your 2021 tax return.
- Been eligible for previous stimulus payments (but didn’t receive them or claim them on your taxes).
If you meet these requirements, you don’t need to take any action. The IRS is handling this automatically, meaning payments will be deposited directly into the bank account linked to your 2021 tax return or mailed to your address on file.
When Will You Get Paid?
The IRS has confirmed that most payments will be processed by late January 2025. For those receiving direct deposits, the funds will appear in bank accounts faster, while mailed checks may take a few more days to arrive.
What Is the Recovery Rebate Credit?
The Recovery Rebate Credit was introduced during the pandemic to allow taxpayers to claim stimulus funds they might have missed. These include:
- $1,200 per individual in March 2020 (CARES Act).
- $600 per individual in December 2020.
- $1,400 per individual in March 2021 (American Rescue Plan).
Some taxpayers either didn’t realize they were eligible or didn’t complete the necessary steps to claim these funds. The current round of payments ensures that eligible individuals finally get the money they’re entitled to.
What Should You Do Next?
If you filed a 2021 tax return and meet the eligibility criteria, simply wait for the payment to arrive. The IRS will send out notifications confirming your eligibility and payment details.
For those who didn’t file a 2021 tax return, there’s still time to claim the Recovery Rebate Credit by submitting your tax return before the April 15, 2025, deadline.
Why This Matters
This initiative by the IRS is part of a larger effort to ensure taxpayers receive the financial support they may have missed during the pandemic. These funds, while delayed, could provide significant relief for families and individuals still recovering financially.
Be sure to keep an eye on your bank account or mailbox this month. If you have questions or need more information, visit the IRS website or consult with a tax professional.
