The Internal Revenue Service (IRS) has announced that it will send out stimulus payments of up to $1,400 each to nearly one million taxpayers in 2025.
These payments are aimed at individuals who missed claiming the Recovery Rebate Credit (RRC) when filing their 2021 tax returns.
The IRS is sending these payments automatically to ensure that eligible taxpayers, who might have missed out on financial relief during the pandemic, get the support they were entitled to.
The total value of these payments is estimated to be $2.4 billion, with the funds being sent out through direct deposits or paper checks, depending on the information the IRS has on file.
There is no need for taxpayers to take any action to receive the payment; it will be issued automatically.
What Are These Stimulus Payments?
These payments are part of the government’s effort to provide financial support to individuals who may have missed out on previous Economic Impact Payments (EIPs).
The Recovery Rebate Credit (RRC) was introduced in 2021 to allow taxpayers to claim missed or incomplete stimulus payments from earlier rounds.
Many taxpayers did not properly claim this credit or left the section blank on their tax returns, sometimes because they were unsure of their eligibility.
To help fix this, the IRS is now issuing automatic payments to those who should have received them.
Who Is Eligible for These Payments?
To qualify for these stimulus payments, individuals must meet the following criteria:
- Filed a 2021 Tax Return: To be eligible, individuals must have filed their tax return for the 2021 tax year.
- Missed the Recovery Rebate Credit (RRC): The IRS is focusing on people who either:
- Left the RRC section blank on their 2021 tax returns.
- Entered a $0 amount despite being eligible for the credit.
These mistakes were often made by people who didn’t fully understand the credit or the process.
- Eligible for Economic Impact Payments (EIPs): The individuals must have been eligible for at least one of the three rounds of Economic Impact Payments during the pandemic. This includes people who missed claiming the payments or those who received less than they were entitled to.
How Much Will Eligible Individuals Receive?
The maximum payment an individual can receive is $1,400. However, the exact amount will depend on several factors:
- The total amount of stimulus payments previously received: If you already received some or all of your stimulus payments during the earlier rounds, the new payment will be adjusted accordingly.
- Income, tax filing status, and number of dependents in 2021: The payment amount will also depend on your personal circumstances. For example:
- A single person who missed out on the earlier payments may receive the full $1,400.
- A family of four (two parents and two children) who missed the RRC could receive up to $5,600 ($1,400 per family member).
How Will the IRS Send the Payments?
The IRS has streamlined the process for sending these payments. Here’s what you need to know about how and when to expect your payment:
- Automatic Payments: The IRS will send payments automatically to eligible taxpayers. No extra forms or requests are required.
- Delivery Methods:
- Direct Deposit: If the IRS has your bank account details, the payment will be directly deposited into that account. The bank details will be taken from your most recent tax return.
- Paper Checks: If you have not provided the IRS with a bank account, you will receive a paper check sent to the address on record with the IRS. It’s essential to make sure your address is up to date to avoid delays.
- Notification Letters: After the payment is sent, the IRS will issue a letter to the recipient with details about the payment, including the amount and how it was calculated. It is important to keep this letter for your records.
- Payment Timeline: Payments are expected to arrive by late January 2025. Taxpayers should keep an eye on their bank accounts or mailboxes and contact the IRS if there are any issues.
Steps to Take If You’re Eligible
If you think you might be eligible for this payment, follow these steps:
- Verify Your 2021 Tax Return: Check if you missed the Recovery Rebate Credit section or made any errors while filling it out.
- File Your Tax Return: If you haven’t filed your 2021 tax return yet, make sure to submit it before the deadline of April 15, 2025, to claim the credit and become eligible for the payment.
- Update Your Information: Ensure the IRS has your current address and bank account details to avoid payment delays.
What If You Haven’t Filed Your 2021 Tax Return?
If you still need to file your 2021 tax return, it’s important to act soon. The deadline for filing 2021 returns and claiming the Recovery Rebate Credit is April 15, 2025.
Even if you had little or no income in 2021, filing your return could make you eligible for up to $1,400.
The IRS recommends reviewing your tax situation and filing your return as soon as possible. Filing a 2021 return could lead to a stimulus payment, even for those who had no income during the pandemic.
Overview of COVID-19 Stimulus Payments
To put these 2025 payments into context, it helps to review the three rounds of stimulus payments issued during the COVID-19 pandemic:
| Stimulus Round | Amount Per Individual | Amount Per Dependent | Legislation |
|---|---|---|---|
| Round 1 (March 2020) | Up to $1,200 | $500 per qualifying child | CARES Act |
| Round 2 (December 2020) | Up to $600 | $600 per qualifying child | Consolidated Appropriations Act |
| Round 3 (March 2021) | Up to $1,400 | $1,400 per qualifying child | American Rescue Plan Act |
These rounds of payments totaled $814 billion and provided vital financial relief to many during the hardest times of the pandemic.
Why Is the IRS Sending These Payments Now?
The IRS is sending these payments now because it discovered that many taxpayers missed claiming the Recovery Rebate Credit on their 2021 tax returns.
IRS Commissioner Danny Werfel mentioned that the process for claiming the credit was complex, and about one million taxpayers either left the credit section blank or filled it out incorrectly.
The IRS has reviewed its records and identified those who were eligible but didn’t receive the credit. Now, the IRS is sending the payments automatically to ensure all eligible individuals receive the financial assistance they deserve.
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Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
