Stimulus Payments January 2025: What deposits will you receive to start the new year?

As part of its continued efforts to assist taxpayers, the Internal Revenue Service (IRS) announced plans to make automatic reimbursements in late January to eligible individuals who did not claim the Recovery Rebate Credit on their 2021 tax return.

The IRS announced the extraordinary action after evaluating internal data that revealed that many eligible taxpayers filed returns but did not claim the credit. The Recovery Rebate Credit is a refundable credit available to those who did not receive one or more Economic Impact Payments (EIPs), often known as stimulus payments. Eligible taxpayers are not required to take any action to receive these funds, which will be paid automatically in December and should arrive in most cases by the end of January 2025.

How will you get your stimulus payments?

Payments will be directly deposited or automatically delivered via paper check; qualified taxpayers will receive a separate letter informing them of the payment.

“The IRS continues to work hard to make improvements and help taxpayers,” said IRS Commissioner Danny Werfel. “These payments demonstrate our commitment to going the additional mile for taxpayers. Our internal data revealed that one million taxpayers failed to claim this difficult credit when they were qualified. “To avoid hassles and get this money to eligible taxpayers, we’re making these payments automatic, implying those affected will not have to go with the complicated procedure of filing an amended return to receive it,” a spokesperson said.

Payments vary depending on several circumstances, but the maximum is $1,400 per individual. The expected fee is $2.4 billion. The IRS also reminded individuals who have not yet submitted their 2021 tax returns that they may be eligible. Still, they must complete their forms by April 15, 2025, to claim the credit and any additional refund they may be entitled to. Taxpayers who qualified but did not claim credit on their 2021 tax returns should receive rewards by the end of January 2025. The payment will be made to the taxpayer’s bank account stated on their 2023 tax return or to the address on record.