This month, the IRS will send stimulus checks to those who qualify. These special stimulus checks are for people who did not apply for the Recovery Rebate Credit when they filed their 2021 taxes. The Recovery Rebate Credit was a program created by the Biden Administration during COVID-19 to help families cope with the financial difficulties caused by the pandemic.
How will eligible taxpayers receive their payment?
Good news for taxpayers: if you qualify for the credit, you do not need to do anything else. The Recovery Rebate Credit is a type of refund for people who did not get one or more Economic Impact Payments, also known as stimulus checks. If you are one of these people, the payments were sent out automatically in December 2024 and should arrive by the end of January 2025.
IRS commissioner Danny Werfel said, “Our internal data shows that one million taxpayers missed out on claiming this complicated credit, even though they were eligible.” Payments will be directly deposited or automatically sent by paper check. If you qualify for the payment, you will get a separate letter informing you about it.
The IRS continues to work to streamline repayment processes
Werfel talked about how the IRS is making it easier for taxpayers to pay their taxes. Making payment processes simpler is important for helping people and businesses file their taxes more easily and efficiently. By making these processes simpler, taxpayers can save time and lower the chance of mistakes, helping them meet deadlines and avoid penalties.
“The IRS is working hard to improve and assist taxpayers,” said Werfel. “These payments show that we are dedicated to helping taxpayers.” Our internal data shows that one million taxpayers missed out on claiming this complicated credit even though they qualified for it.
He added: “To make it easier and ensure that eligible taxpayers get their money, we are making these payments automatic. This means they will not need to go through a long process to file a change to their tax return to receive it.”
Stimulus checks continue to be distributed across states
The COVID-19 stimulus checks from the federal government were very important in helping millions of Americans during the early days of the pandemic. As businesses closed and workers lost their jobs, the economy suffered a major decline.
These direct payments helped people and families who were having a hard time paying their bills. The checks, given out in several rounds, helped pay for important expenses like rent, utilities, and food. The government wanted to quickly help people and businesses to keep the economy strong, lessen financial struggles, and encourage spending.
As the pandemic lessened and the economy started to improve, the federal stimulus payments were slowly ended. Still, some states have chosen to keep or start their own aid programs.
These state-level programs are different in how they work, but they all aim to offer extra help in areas that still need it. Some states have given direct payments to residents, while others have started programs for specific groups, like low-income workers or families with children.
These state efforts understand that even though federal help has stopped, people still need financial support. There are rumors and worries about what will happen to stimulus checks under the new Trump administration, but these payments are not likely to go away. Stimulus checks will keep helping millions of families and individuals with their living expenses.
