The IRS is sending out payments of up to $1,702 to taxpayers who missed claiming the Recovery Rebate Credit on their 2021 tax returns. Here’s everything you need to know about this automatic payout, how to check eligibility, and when to expect your money.
Who’s Eligible for the 2025 Stimulus Payment?
To qualify, you need to meet the following criteria:
- Filed a 2021 Tax Return: If you submitted your 2021 tax return but didn’t claim the Recovery Rebate Credit, you may be eligible.
- Income Requirements: Your adjusted gross income (AGI) must fall within these limits:
- Single filers: Below $80,000
- Heads of household: Below $120,000
- Married couples filing jointly: Below $160,000
The IRS is focusing on individuals who were eligible for the 2021 stimulus but didn’t claim the credit. This initiative ensures that taxpayers don’t miss out on the financial support they deserve.
How Much Will You Get?
Each eligible individual can receive up to $1,400, with additional amounts for qualifying dependents. If you have a family of four, for instance, your total payment could reach $5,600.
When and How Will You Get Paid?
- Timeline: Payments started rolling out in December 2024, with most expected to arrive by late January 2025.
- Payment Method: The IRS will use the information on your most recent tax return.
- Direct deposits will go to the bank account on file.
- Paper checks will be sent to the address listed on your tax return.
No further action is required if your information is up to date with the IRS.
What If You Haven’t Filed Yet?
Good news! If you didn’t file your 2021 tax return, you still have time to claim the Recovery Rebate Credit by submitting it before the April 15, 2025, deadline. Even individuals with little to no income can file and benefit.
Background on the Stimulus Program
These payments are part of the broader economic relief measures launched during the pandemic. Between 2020 and 2021, the government issued three rounds of payments to support struggling families:
- Up to $1,200 per person under the CARES Act in 2020.
- $600 per person under the Consolidated Appropriations Act in late 2020.
- $1,400 per person under the American Rescue Plan in 2021.
The Recovery Rebate Credit was designed to ensure everyone eligible receives their payments, even if they missed earlier rounds.
Key Takeaways
If you’re eligible, there’s no need to stress – the IRS is automatically sending the payments. Just ensure your banking and mailing information is accurate to avoid delays. If you haven’t filed your 2021 tax return, do it soon to secure your share of the $1,702.
Keep an eye on your mailbox or bank account, and get ready for a helpful financial boost!
