As the tax filing season begins, 1 million individuals are already scheduled to receive automatic payments from the IRS.
Many people are asking, “Will I receive an IRS stimulus check in 2025?” “IRS automatic stimulus payments” is a breakout search, with more searches about eligibility, according to Google Trends data from Wednesday.
Those amounts do not represent this year’s tax refund. Instead, the rewards of up to $1,400 per individual are Recovery Rebate Credits that eligible taxpayers did not claim on their 2021 tax returns.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were eligible,” IRS Commissioner Danny Werfel said in a December statement when the automatic payments were announced.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” Werfel said.
Eligibility
The IRS intends to make approximately $2.4 billion in automated payouts to qualified taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns.
The maximum amount is $1,400 per individual or $2,800 for a married pair.
A family of four, including a married couple and two qualifying dependents included on their tax returns, might get up to $5,600.
However, the payment amounts may differ, according to the IRS.
Individual taxpayers with up to $75,000 in adjusted gross income and married couples filing jointly with up to $150,000 can claim the full credit in 2021. The credit begins to phase off for incomes over those limits, and it is eliminated for individuals with $80,000 or more in adjusted gross income and married couples with $160,000 or more.
What do I need to do to receive automatic payments?
According to the IRS, if you are qualified for a payment, there is nothing you need to do.
The funds should arrive in late January and will be transferred directly into the bank account stated on your 2023 tax return or mailed to the address on file with the IRS.
Eligible taxpayers will get a separate letter informing them that the payment has been paid.
Did the stimulus cheques boost inflation?
Millions of Americans awaited the stimulus cheques in the aftermath of the unexpected COVID-19 shutdown, which might have cut off their customary sources of income.
However, following the 2020 and 2021 payments, as well as increased unemployment and direct child tax credit checks, inflation surged to levels not seen in decades.
This has prompted some to question if the stimulus efforts contributed to the inflation increase.
People sought items from China and other parts of the world, but there were massive supply chain problems that drove up prices, she added.
On Wednesday, new official inflation statistics revealed that core inflation — excluding food and energy prices — decreased in December, sparking a stock market rise. Despite this improvement, the Federal Reserve still has work to do to meet its 2% inflation target.
