The IRS announced the stimulus check for the unclaimed Recovery Rebate Credit on 2021 tax returns in December 2024. As per the announcement, the agency has decided to automatically credit the payment to the eligible taxpayers by January or February 2025.
Some taxpayers may have already received the stimulus check 2025. However, the taxpayers who didn’t file the 2021 tax return may not receive the automatic stimulus check even when they are eligible. Taxpayers wondering about their 2025 stimulus can check every detail here.
Stimulus Check 2025
The federal government’s Economic Impact Payment to help the citizens going through the economic crisis due to the pandemic. With this payment, the government provided $3400 to the family of four to provide them financial relief. However, many citizens didn’t receive the last phase of payment, so the agency introduced the Recovery Rebate Credit to offer stimulus checks to people who did not receive the Economic Impact Payment.
The IRS has reviewed the internal data and saw many eligible taxpayers have not claimed the Recovery Rebate Credit 2021, hence, in December 2024, they announced the stimulus check. As mentioned earlier, the IRS plans to distribute the stimulus check automatically by late January or in February 2025.
The IRS estimates that around $2.4 billion in payments will be made under this stimulus check to the eligible taxpayers. The taxpayers who were eligible for automatic payment must have already received the automatic payment, but the taxpayers who never filed the 2021 tax returns and whose details are not recorded in the agency records need to wait for their stimulus check as they have to file the tax return to claim this refundable credit.
How can you know if you have received the stimulus check or not?
Taxpayers who are in doubt if they have received the Recovery Rebate Credit or Economically Impact payment to ensure if their eligibility of the stimulus check can check their received payment in the following ways:
- The taxpayers can check their online account, see their total of Economic Impact payment under the EIP information section in the account.
- Taxpayers can also check if they have received the Notice 1444 (EIP for 2020 tax year), Notice 1444-B (EIP second payment), and Notice 1444-C (EIP third payment for 2021 tax year). The notices confirm the agency has sent their payment on time.
- Taxpayers may also check the Letter 6475, which confirms the agency has sent the third Economic Impact payment and additional payment for the 2021 tax year.
With these notices or letters, the taxpayers can confirm if they have received the final payment and if they have not, they are eligible for the Recovery Rebate credit. The married couple who filed the tax returns jointly should log into their separate online account or check their own letter of the half of the payment to confirm they have received the payment.
How does the Recovery Rebate Credit work?
Taxpayers wondering how the Recovery rebate credit works and how much the refundable credit offers can check the guidelines of the credit below:
- As per the IRS guidelines, the single individuals with adjusted gross income of $75,000 or less in 2021 can receive up to the maximum payment of $1400. If the AGI of individuals is more than $75,000, their payout will be reduced and it can completely phase out if the AGI is $80,000.
- If you are married and filed the tax return jointly, your AGI should be $150,000 or less to receive the refundable credit of $28,00 for two people. If the annual gross income of the couple exceeds the limit, it will reduce, and ultimately phase out at $160,000.
- If the eligible families have dependents, such families would be eligible for a $1,400 payment for each dependent in 2021 based on the income limit as per their filing status.
Now as per the IRS December 2024 announcement, the maximum payment the taxpayers can receive through the current stimulus check is $1400, which can increase or decrease depending on their 2021 situation.
How can you apply to receive the Stimulus check 2025?
Taxpayers who find themselves eligible for the Recovery Rebate Credit and now claim the credit as they did not file the 2021 tax return should file their tax return for the 2021 tax year in the ongoing 2025 tax season before the deadline, 15 April 2025.
The IRS has requested such taxpayers to file their 2021 tax return even if they had no income to report, or a minimal source of income. The taxpayers will have only this tax season to claim this recovery rebate credit because the agency allows the taxpayers to file the tax return for past years for three years.
When can you expect your Stimulus check 2025?
Once you filed the 2021 tax return in this tax season, the IRS will review your return and if you are eligible for the Recovery Rebate Credit, the agency will work on processing your payment. Taxpayers can check the tax return status through the Where’s My Refund tool.
The taxpayers can expect their payment within a month or three weeks, through the physical check or the bank account listed in their tax return. Taxpayers should ensure they filed the tax return with valid information to ensure their payment is processed timely without any delay.
Currently, the IRS has faced staff cuts under the Trump administration, so the taxpayers can expect some delay in their credit processing, nevertheless, the IRS will process their payment if they filed the 2021 tax return before the tax deadline.