The Internal Revenue Service (IRS) has confirmed that $1,400 stimulus checks will be sent to eligible taxpayers in 2025. These payments will represent unclaimed Recovery Rebate Credits from 2021 and over 1 million Americans are expected to receive them. As the 2025 tax filing season begins, many Americans are wondering if they will receive IRS stimulus this year.
Why the IRS is Issuing Payments Now
The Recovery Rebate Credit was introduced during the COVID-19 pandemic as part of the American Rescue Plan Act, also known as the COVID-19 Stimulus Package, in March 2021. In the third round of stimulus payments, eligible Americans would receive up to $1,400 per individual and $2,800 per married couple.
However, during a routine IRS review, it was discovered that one million taxpayers never claimed the credit on their 2021 tax returns. While some mistakenly entered $0 instead of the correct amount, others left the field blank. To address this oversight, the IRS automated the process to enable such taxpayers to receive the money they were entitled to.
Who is Eligible for the $1,400 Automatic Payments?
In total, the IRS will disburse approximately $2.4 billion in automatic payments to eligible individuals. The following parties qualify to receive these automatic payments;
- Individuals with an adjusted gross income (AGI) of up to $75,000.
- Married couples who jointly file taxes with an AGI of up to $150,000.
- Eligible dependents especially children qualify for $1,400 per person. For instance, a married couple with two qualifying dependents could receive up to $5,600 in total.
- Individuals earning $80,000 and above and couples earning $160,000 and above will be phased out completely.
What to do to receive the Payment
If you are eligible to receive the payment, you do not have to do anything because the IRS will automatically send it to the bank you provided in your 2021 tax return or mail a paper check to your latest known address. Additionally, the IRS will send a notification letter to confirm that the payment has been processed.
What to Do If You Haven’t Received the Payment
If you are eligible for the payment but fail to receive it, you will have to file a 2021 tax return if you have not done so. The deadline to file is April 15, 2025. You need to file a return to claim the Recovery Rebate Credit even if you had minimal or no income in 2021.
How to Check Your Payment Status
To check your eligibility or payment status log in to your IRS Online Account and navigate to the “Tax Records” section. Check previous stimulus payments received through IRS transcripts. To track your payment, use the “Where is My Refund?” tool.
Do Stimulus Checks Contribute to Inflation?
Although the pandemic-era stimulus checks were intended to help Americans cope with financial hardships caused by COVID-19, experts believe that the payments also contributed to higher inflation. According to Former Treasury Secretary Janet Yellen, stimulus spending might have played a small role in inflation. However, she argued that it was necessary to prevent economic collapse.
The IRS has made it easier for eligible taxpayers to receive their stimulus payments by automating the process. To receive these checks, ensure that you file your 2021 tax returns before April 15, 2025, to claim any pending Recovery Rebate Credit. For more information, check your online IRS account or visit IRS.gov.