Stimulus Payments in 2025, the IRS is sending $1,400 stimulus payments to nearly one million people who missed claiming financial relief during the COVID-19 pandemic. These payments are for taxpayers who didn’t claim the Recovery Rebate Credit (RRC) on their 2021 tax returns. The IRS has started automatically issuing these payments to ensure that eligible individuals receive the support they are entitled to. Here, we will explain who qualifies for the payment, how much they will receive, and how the process works.
What Are These Stimulus Payments?
In 2025, the IRS is issuing special $1,400 stimulus payments to people who missed out on financial help during the pandemic. These payments are for people who were eligible for the Economic Impact Payments (EIP) but did not claim the Recovery Rebate Credit (RRC) when filing their 2021 taxes. The RRC allowed taxpayers to claim any missed payments, but many did not fill out this section properly, which is why the IRS is now correcting the issue automatically.
Who Is Eligible for These Payments?
To qualify for the $1,400 payment, you must have filed a tax return for 2021. If you didn’t claim the Recovery Rebate Credit or filled it out incorrectly, you may be eligible. Here are the main conditions:
- Filed a 2021 Tax Return: You must have filed your taxes for 2021.
- Missed Claiming the Recovery Rebate Credit: If you either left the section blank or claimed $0 when you should have been eligible, you could be qualified.
- Eligible for Economic Impact Payments (EIPs): You need to have been eligible for the EIP during one of the three rounds of payments made during the pandemic.
How Much Will Eligible Individuals Receive?
The maximum amount you can receive is $1,400 per person, but the actual amount may vary depending on different factors:
- Previous Stimulus Payments: If you already received some stimulus payments, the amount could be lower.
- Income and Tax Status: How much you earned and your tax filing status (single, married, etc.) will also affect the payment.
- Dependents: If you have children or other dependents, you could receive more. For example, a family of four might be eligible for $5,600 ($1,400 for each member).
How Will the IRS Send the Payments?
You do not need to do anything to receive the payment. The IRS will send the money automatically through one of two ways:
- Direct Deposit: If the IRS has your bank account details from your most recent tax return, the payment will be deposited directly into your account.
- Paper Checks: If you don’t have a bank account on file, the IRS will send a check to the address they have for you. Be sure your address is up to date to avoid delays.
The IRS will also send a letter with details about your payment, such as the amount and how it was calculated. Keep this letter for your records.
Steps to Take If You’re Eligible
If you believe you qualify for the stimulus payment, here are some steps to ensure you get your money:
- Check Your 2021 Tax Return: Make sure the Recovery Rebate Credit section was not skipped or filled out incorrectly.
- File Your Tax Return: If you haven’t filed your 2021 taxes yet, you need to do so before April 15, 2025. This is the deadline to claim the credit.
- Update Your Information: Make sure the IRS has your current address and bank account details to avoid delays.
What If You Haven’t Filed Your 2021 Tax Return?
If you haven’t filed your 2021 tax return yet, it’s not too late! You can still file your taxes and claim the Recovery Rebate Credit to receive the payment. The deadline to file is April 15, 2025. Even if you had little or no income in 2021, you could still be eligible for the payment. It’s important to file your return soon to ensure you get your payment.
Overview of COVID-19 Stimulus Payments
To better understand the current payments, it helps to look back at the previous rounds of stimulus payments that the government sent during the pandemic. These were aimed at helping people through difficult times.
- Round 1: $1,200 per person and $500 per child (March 2020)
- Round 2: $600 per person and $600 per child (December 2020)
- Round 3: $1,400 per person and $1,400 per child (March 2021)
These payments totaled over $800 billion and were crucial in providing financial support to millions of Americans.
Why Is the IRS Sending These Payments Now?
The IRS is sending out these payments to help people who missed out on stimulus payments they were entitled to. Many taxpayers didn’t claim the Recovery Rebate Credit in 2021 because the process was confusing. The IRS identified these individuals through its records and is now correcting the mistake by issuing these automatic payments. According to IRS Commissioner Danny Werfel, the IRS noticed that about one million taxpayers missed claiming this credit and is working to ensure they receive their rightful payments.
Conclusion
In 2025, the IRS is correcting past mistakes by sending $1,400 stimulus payments to those who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This effort aims to ensure that everyone who was eligible for financial support during the pandemic receives the money they deserve. If you haven’t filed your 2021 tax return yet, make sure to do so before the April 15, 2025 deadline to claim your payment. The IRS will send the payment automatically through direct deposit or a paper check, and you do not need to take any action unless you need to update your information.
FOR MORE LATEST NEWS –City Well Being Centre