The IRS is sending out one last batch of stimulus payments, giving eligible Americans up to $1,400 per person. This surprise financial relief is aimed at individuals who missed out on the 2021 Recovery Rebate Credit—a key part of the government’s pandemic support program.
Why Are These Payments Happening Now?
During the COVID-19 pandemic, the federal government issued three rounds of stimulus checks to help Americans cope with financial challenges. However, some individuals didn’t receive the full amount they were owed in the first or second rounds. To fix this, the IRS introduced the Recovery Rebate Credit, which allowed people to claim any missed payments on their 2021 tax returns.
Now, the IRS is making sure those who didn’t claim the credit get the money they’re entitled to. This final round of payments will benefit approximately one million taxpayers, totaling $2.4 billion in funds.
Who Is Eligible?
To qualify for these payments, you need to meet certain income and filing requirements:
- Single filers must have an adjusted gross income (AGI) under $80,000.
- Heads of household qualify if their AGI is below $120,000.
- Married couples filing jointly must have an AGI under $160,000.
The maximum payment is $1,400 per person, and families can receive additional funds for qualifying dependents.
How Will the Money Be Sent?
The IRS began distributing these payments in December 2024, and most recipients will receive their money by the end of January 2025. If you’re eligible, you don’t need to do anything—the IRS is sending the payments automatically.
Payments are being deposited directly into bank accounts on file with the IRS or sent as paper checks to the address provided on your most recent tax return. If your bank account is closed, the IRS will mail you a check instead.
Missed Your Chance? There’s Still Time
If you haven’t filed your 2021 taxes yet, you can still claim the Recovery Rebate Credit by submitting your return before April 15, 2025. This is especially important if you had major life changes in 2021, like having a child or becoming financially independent.
For those who already filed but didn’t claim the credit, the IRS has automatically reviewed your eligibility and sent out payments where applicable. Keep an eye out for a letter from the IRS explaining your payment.
What Should You Do Next?
Make sure to check your mail or bank account for this payment if you think you’re eligible. If you don’t receive it, double-check your tax filings or consult a tax professional to ensure you claimed the credit properly.
This marks the final effort by the IRS to distribute unclaimed stimulus funds, so don’t miss out if you qualify.
