The IRS is sending out billions of dollars in stimulus payments to millions of Americans in February 2025. These payments are for individuals who didn’t receive all of their federal stimulus checks during the pandemic. While most people received their stimulus checks, some may have missed out on the full amount due to complications with their 2021 tax returns.
Who Is eligible for the stimulus checks?
The IRS is sending out approximately $2.4 billion in automatic payments to around 1 million individuals who were eligible for the Recovery Rebate Credit but did not claim it on their 2021 tax returns. This credit was designed for individuals who missed out on any of the three rounds of federal stimulus payments issued during the pandemic: two in 2020 and one in 2021.
If you filed your tax return in 2021 but neglected to claim the Recovery Rebate Credit, the IRS is now issuing automatic payments to correct the mistake. These payments will be sent to taxpayers who qualify, with up to $1,400 per individual or $2,800 for married couples. A family of four could receive as much as $5,600. However, the exact amount varies depending on individual circumstances, such as the number of dependents claimed on the tax return.
The full credit is available for individuals earning up to $75,000 annually and married couples earning up to $150,000. Above these thresholds, the credit gradually phases out, reaching zero for individuals with an income of $80,000 or more and married couples earning $160,000 or more.
How do you receive your stimulus check?
If you’re eligible for the payment, there’s no need for you to take any action. The IRS is making these payments automatic, so you don’t have to file an amended return or go through a lengthy application process. The payments will be sent via direct deposit to the bank account listed on your 2023 tax return, or by paper check to the address the IRS has on file.
You should receive your payment by late January or early February 2025. If you qualify for the payment, the IRS will send you a separate letter to confirm the payment has been made. This letter will include details on the amount you received and how it was processed. For many individuals, these stimulus payments will arrive just as tax season kicks off, giving you some financial relief before you file your taxes. The automatic payment process is designed to minimize any potential delays or complications, ensuring that those who are eligible can quickly access the funds without additional steps.
What if you don’t receive the check?
If you believe you should have received a payment but didn’t, it’s important to first check whether you are eligible. If you missed claiming the Recovery Rebate Credit on your 2021 tax return, you may still be able to claim it by filing your return before the April 15 deadline. This is true even if you had little or no income in 2021 as filing a return is still required to claim the credit. Remember to always remain informed on any updates announced by the IRS to ensure you are aware of payments you may receive.
The IRS encourages taxpayers who haven’t filed their 2021 returns to do so promptly, as this is the only way to potentially receive the funds if they weren’t automatically sent. After filing, you may receive your Recovery Rebate Credit in the form of a tax refund or direct deposit.
In addition to the unclaimed stimulus checks, a new round of payments will be released in February from the Social Security Administration. These continuous monthly payments offer financial support for retired individuals, individuals with little to no income, as well as people with disabilities. This year, the payments have been raised by 2.5% from last year due to the cost-of-living-adjustment statistic which is implemented each year.
