As tax filing season commences, the IRS is set to distribute automatic payments to 1 million taxpayers, prompting many to inquire about the possibility of receiving an IRS stimulus check in 2025. A surge in searches for “IRS automatic stimulus payments” reflects growing interest in eligibility criteria, based on Google Trends data from Wednesday.
These payments, amounting to up to $1,400 per individual, are not part of this year’s tax refunds but rather represent unclaimed Recovery Rebate Credits from the 2021 tax season. IRS Commissioner Danny Werfel highlighted that one million eligible taxpayers missed claiming this credit, prompting the decision to issue automatic payments to streamline the process and ensure recipients receive the funds without needing to file an amended return.
Who qualifies for a $1,400 payment? The IRS intends to distribute approximately $2.4 billion in automatic payments to individuals who did not claim the Recovery Rebate Credit in their 2021 tax filings. The maximum payment is $1,400 per individual or $2,800 per married couple, with families of four potentially receiving up to $5,600. Payment amounts vary based on income thresholds, with the full credit available to individual taxpayers earning up to $75,000 in adjusted gross income and joint filers up to $150,000, phasing out for incomes above these thresholds.
If eligible, recipients do not need to take any action to receive the automatic payment, which is expected to arrive by late January via direct deposit or mailed check to the address on record. A separate notification letter will inform recipients of the payment.
In the event of not receiving an automatic payment but believing eligibility exists, individuals can claim the Recovery Rebate Credit by filing a 2021 tax return before the April 15 deadline, even with minimal or zero income that year.
Regarding concerns about inflation stemming from stimulus checks, Treasury Secretary Janet Yellen acknowledged that the stimulus spending, although possibly contributing to inflation, was essential to prevent widespread economic hardship. Yellen attributed the inflation spike mainly to supply chain issues rather than stimulus efforts.
“Challenges that led to increased prices were highlighted by an individual, she noted. According to recent government data released on Wednesday, the rate of core inflation, which excludes food and energy costs, decelerated in December. This development contributed to a surge in the stock market. Despite this positive development, the Federal Reserve is still working towards achieving its 2% inflation target. In other news from CNBC: Bank of America exceeds expectations due to stronger-than-anticipated performance in investment banking and interest income. Nintendo unveils the highly anticipated Switch 2 console scheduled for release later this year. A startup in Brooklyn secures $10 million in funding to support open-source developers in receiving compensation for their work.”
