The buzz surrounding $1,400 stimulus payments in January 2025 is true. The IRS has announced it will issue these payments to around one million taxpayers as part of an effort to ensure everyone receives the financial relief they were entitled to during the COVID-19 pandemic.
What’s Behind the $1,400 Payments?
During the pandemic, the U.S. government distributed three rounds of Economic Impact Payments (EIPs) to provide relief:
- March 2020: $1,200 per adult and $500 per child under the CARES Act.
- December 2020: $600 per person under the Consolidated Appropriations Act.
- March 2021: $1,400 per person and $1,400 per qualifying dependent under the American Rescue Plan Act.
For those who missed out on any payments or received less than they were eligible for, the IRS introduced the Recovery Rebate Credit (RRC). This allowed taxpayers to claim their due funds while filing their tax returns.
Who’s Getting These Payments Now?
The IRS found that about one million people who filed their 2021 tax returns didn’t claim the RRC even though they qualified. To fix this, the IRS is now sending out special payments of up to $1,400 per individual.
If you’re eligible, there’s good news you don’t have to do anything! Payments will be automatically deposited into your bank account or sent as a paper check, based on the information from your most recent tax return. Notifications will also be mailed out to confirm the payments.
What If You Didn’t File?
It’s not too late to claim your payment. Taxpayers who haven’t filed their 2021 tax returns can still do so by April 15, 2025, and claim the Recovery Rebate Credit. This includes people with little or no income during the pandemic.
When Will You Receive It?
The payments are scheduled to arrive by late January 2025. For eligible taxpayers, this will be a welcome relief without any extra steps required.
The Bottom Line
The $1,400 payments are real and part of the government’s effort to ensure no one is left behind from pandemic-era relief programs. Keep an eye on your mailbox or bank account as the IRS continues its distributions.
