IRS Distributes Unclaimed Stimulus Checks: Secure Yours in February!

In February 2025, the IRS plans to distribute billions in stimulus payments to several million Americans. These funds are intended for those who did not receive the full amount of their federal stimulus checks during the pandemic due to issues with their 2021 tax filings. While the majority of recipients got their checks, a number missed out on the complete sum they were entitled to.

Eligibility Criteria for the Stimulus Payments

Approximately $2.4 billion in automatic payments will be sent to around 1 million eligible individuals who didn’t claim their Recovery Rebate Credit on their 2021 tax returns. This credit applies to those who missed one or more of the three federal stimulus payments released during the pandemic—two in 2020 and one in 2021.

If you did submit your tax return in 2021 but failed to claim the Recovery Rebate Credit, the IRS will now automatically issue these payments. Eligible taxpayers could receive up to $1,400 individually or $2,800 for a married couple filing jointly. A family of four might see up to $5,600, though the precise amount will vary based on specifics like the number of dependents listed on the tax return.

The full credit is accessible to individuals with annual earnings up to $75,000 and married couples making up to $150,000. The benefit diminishes beyond these income levels and phases out completely for individuals earning $80,000 and couples earning $160,000 or more.

Receiving Your Stimulus Check

If you qualify for the payment, you don’t need to take any action. The IRS is handling these payments automatically, so there’s no need to file an amended tax return or engage in a complicated application procedure. Payments will be made either through direct deposit, using the bank account details from your 2023 tax return, or via a paper check sent to the address the IRS has on record.

The payments are expected to be disbursed by late January or early February 2025. Eligible recipients will receive a notification letter from the IRS confirming the disbursement. This letter will provide details about the payment amount and the payment method. For many, this will provide a financial boost just as the tax filing season begins, designed to be seamless and reduce potential delays or issues.

What to Do if You Don’t Receive Your Check

If you anticipate a payment but haven’t received one, first verify your eligibility. If you neglected to claim the Recovery Rebate Credit on your 2021 tax return, you might still be able to claim it by filing your tax return before the April 15 deadline. This is applicable even if you had minimal or no income in 2021, as filing a tax return is necessary to claim the credit.

The IRS urges those who haven’t yet filed their 2021 tax returns to do so promptly, as this is the only way to potentially receive the funds if they weren’t sent automatically. After filing, your Recovery Rebate Credit may be issued either as part of your tax refund or through direct deposit.

Beyond these unclaimed stimulus checks, the Social Security Administration will also start issuing a new round of payments in February. These payments provide ongoing financial support to retirees, individuals with minimal or no income, and those with disabilities. This year, the payments have increased by 2.5% due to the annual cost-of-living adjustment.