If you’ve been hoping for a little extra money in your pocket, here’s some good news: the IRS is currently distributing stimulus payments of up to $1,400 to about one million taxpayers. This surprise payout comes as part of a broader effort to get financial relief to people who may have missed out on previous stimulus checks during the COVID-19 pandemic. In total, the IRS expects to send out $2.4 billion in payments by the end of January 2025.
Why These Payments Are Happening
This round of payments is linked to the Recovery Rebate Credit, a program designed to help individuals who didn’t receive full stimulus payments back in 2020 or 2021. The IRS found that many people who qualified for the credit either missed it or didn’t claim it when they filed their 2021 taxes. To fix that, they’re automatically sending payments to those eligible.
Do You Qualify for the $1,400?
If your income in 2021 fell within these limits, you could qualify for the full payment:
- $75,000 or less for single filers
- $150,000 or less for married couples filing jointly
- $112,500 or less for heads of household
If you earned more than those amounts, you may still get a smaller payment since the amount phases out as income rises.
How and When You’ll Get the Money
The good news? You don’t have to do anything. The IRS is automatically issuing payments to eligible taxpayers through direct deposit or by mailing paper checks to the address they have on file. You’ll also receive a letter in the mail confirming your payment, so keep an eye on your mailbox. Most people should get their money by the end of January 2025.
What About People Who Haven’t Filed Taxes?
If you haven’t filed your 2021 tax return yet, there’s still time to claim the credit. Even if you don’t normally file taxes due to low or no income, the IRS urges you to file by April 15, 2025, to claim any money you’re eligible for.
This unexpected round of payments is the IRS’s way of ensuring that no one misses out on financial relief they’re entitled to. So, if you think you might be eligible, double-check your 2021 tax situation. It’s free money, and with inflation still making life a little harder, every bit helps!