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With tax filing season underway, the IRS is set to automatically send payments to one million taxpayers.
Queries like “Will I receive an IRS stimulus check in 2025?” and “IRS automatic stimulus payments” are on the rise, indicating increasing interest in eligibility for these automatic payments, as per Google Trends data.
These payments are not tax refunds for this year, but rather Recovery Rebate Credits of up to $1,400 per individual that were left unclaimed on 2021 tax returns for eligible individuals.
IRS Commissioner Danny Werfel announced the automatic payments in December, stating that one million taxpayers missed claiming the credit they were entitled to, prompting the automatic process to ensure eligible recipients receive the funds without having to file an amended return.
Who Qualifies for a $1,400 Payment?
The IRS is expected to distribute around $2.4 billion in automatic payments to individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns.
The maximum payment is $1,400 per individual or $2,800 per married couple.
A family of four, including a married couple and two qualifying dependents, could receive up to $5,600.
Payment amounts may vary, and eligibility criteria include adjusted gross income thresholds, with the full credit amount available up to certain income levels for both single filers and married couples.
How to Receive an Automatic Payment?
Eligible recipients do not need to take any action, as the payments will be automatically deposited into the bank account listed on their 2023 tax return or sent via paper check to the address on file by late January.
Recipients will also receive a separate notification letter confirming the payment.
Claiming Unreceived Funds and Addressing Inflation Concerns
If individuals do not receive a check, there are steps they can take to claim the funds owed to them.
Following the stimulus payments in response to the Covid-19 crisis, concerns about inflation have emerged, with some attributing the spike to these stimulus efforts.
Treasury Secretary Janet Yellen acknowledged the potential impact on inflation but emphasized the necessity of the spending to prevent widespread economic hardship.
She pointed to supply chain disruptions as a key factor contributing to inflationary pressures, with recent data showing a slowdown in core inflation, leading to cautious optimism but recognizing ongoing challenges for the Federal Reserve in meeting its inflation targets.